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Spring budget 2024 - alcohol and tobacco duty

Spring Budget 2024 – Alcohol and Tobacco Duty

7 March 2024

As part of the Spring Budget measures, the Chancellor announced that the duty rates on beer, cider, wine and spirits would be frozen at the current rates from 1 August 2024 until 1 February 2025.

As part of the Spring Budget measures, the Chancellor announced that the duty rates on beer, cider, wine and spirits would be frozen at the current rates from 1 August 2024 until 1 February 2025. This extends the previous alcohol duty freeze, announced in last year’s Autumn Statement. The previous freeze became effective on 1 February 2024. It was originally set to last for 6 months until 1 August 2024. The Chancellor stated that this measure will benefit some 38,000 pubs across the UK.

As part of the Spring Budget, the government also announced its intention to introduce a new duty on vaping products. New legislation for this will be included in a future finance bill. The government has published a consultation on the detailed design and implementation, and it will close on 29 May 2024.

Registration for the duty will open on 1 April 2026 with it taking effect from 1 October 2026 alongside a proportionate increase in tobacco duties.

The duty will apply to liquids for use in vaping devices and e-cigarettes at the following rates:

  • £1 per 10ml for nicotine free liquids
  • £2 per 10ml for liquid containing nicotine at concentrations between 0.1 to 10.9mg per ml
  • £3 per 10ml for liquids containing nicotine at concentrations 11mg per ml, or above

The government will also make a one-off tobacco duty increase of £2 per 100 cigarettes or 50 grams of tobacco from 1 October 2026.

No further changes to the duty rates on tobacco products were announced.

Source: HM Treasury Wed, 06 Mar 2024 00:00:00 +0100

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