Finance Act 2026

Vehicle excise duty for rigid goods vehicles without trailers and tractive units

93

• (1) Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.

• (2) In paragraph 9 (rigid goods vehicles exceeding 3,500 kgs revenue weight), for the table in sub-paragraph (1) substitute—

Revenue weight of vehicle	Revenue weight of vehicle	Rate	Rate	Rate
(1)	(2)	(3)	(4)	(5)
Exceeding	Not exceeding	Two axle vehicle	Three axle vehicle	Four or more axle vehicle
kgs	kgs	£	£	£
3,500	7,500	177	177	177
7,500	11,999	215	215	215
11,999	14,000	102	102	102
14,000	15,000	113	102	102
15,000	19,000	322	102	102
19,000	21,000	322	135	102
21,000	23,000	322	226	102
23,000	25,000	322	322	226
25,000	27,000	322	322	322
27,000	44,000	322	322	601

• (3) In paragraph 11(1) (tractive units), for Table 1 and Table 2 substitute—

Revenue weight of vehicle	Revenue weight of vehicle	Rate	Rate	Rate
(1)	(2)	(3)	(4)	(5)
Exceeding	Not exceeding	Any no of semi-trailer axles	2 or more semi-trailer axles	3 or more semi-trailer axles
kgs	kgs	£	£	£
3,500	11,999	177	177	177
11,999	22,000	86	86	86
22,000	23,000	90	86	86
23,000	25,000	163	86	86
25,000	26,000	285	108	86
26,000	28,000	285	157	86
28,000	31,000	322	322	86
31,000	33,000	601	601	226
33,000	34,000	601	654	226
34,000	38,000	741	741	601
38,000	44,000	913	913	913
Revenue weight of vehicle	Revenue weight of vehicle	Rate	Rate	Rate
---	---	---	---	---
(1)	(2)	(3)	(4)	(5)
Exceeding	Not exceeding	Any no of semi-trailer axles	2 or more semi-trailer axles	3 or more semi-trailer axles
kgs	kgs	£	£	£
3,500	11,999	177	177	177
11,999	25,000	86	86	86
25,000	26,000	108	86	86
26,000	28,000	157	86	86
28,000	29,000	226	86	86
29,000	31,000	311	86	86
31,000	33,000	601	226	86
33,000	34,000	654	322	86
34,000	36,000	654	322	226
36,000	38,000	741	601	322
38,000	44,000	913	913	601

• (4) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2026.

Vehicle excise duty for rigid goods vehicles with trailers

94

• (1) In paragraph 10 of Schedule 1 to VERA 1994 (supplement to annual rate of duty for rigid goods vehicles with trailers), in sub-paragraph (6), for the Tables 1 to 6 substitute—

Vehicle excise duty band	Plated gross weight of trailer	Plated gross weight of trailer	Total weight	Total weight	Rate
(1)	(2)	(3)	(4)	(5)	(6)
	Exceeding (kgs)	Not exceeding (kgs)	Exceeding (kgs)	Not exceeding (kgs)	£
B(T)	4,000	12,000	-	27,000	247
B(T)	12,000	-	-	33,000	317
B(T)	12,000	-	33,000	36,000	431
B(T)	12,000	-	36,000	38,000	343
B(T)	12,000	-	38,000	-	477
D(T)	4,000	12,000	-	30,000	392
D(T)	12,000	-	-	38,000	462
D(T)	12,000	-	38,000	-	477
Vehicle excise duty band	Plated gross weight of trailer	Plated gross weight of trailer	Total weight	Total weight	Rate
---	---	---	---	---	---
(1)	(2)	(3)	(4)	(5)	(6)
	Exceeding (kgs)	Not exceeding (kgs)	Exceeding (kgs)	Not exceeding (kgs)	£
B(T)	4,000	12,000	-	33,000	247
B(T)	12,000	-	-	38,000	317
B(T)	12,000	-	38,000	40,000	421
B(T)	12,000	-	40,000	-	317
C(T)	4,000	12,000	-	35,000	328
C(T)	12,000	-	-	38,000	397
C(T)	12,000	-	38,000	40,000	421
C(T)	12,000	-	40,000	-	397
D(T)	4,000	10,000	-	33,000	392
D(T)	4,000	10,000	33,000	36,000	431
D(T)	10,000	12,000	-	38,000	392
D(T)	12,000	-	-	-	462
Vehicle excise duty band	Plated gross weight of trailer	Plated gross weight of trailer	Total weight	Total weight	Rate
---	---	---	---	---	---
(1)	(2)	(3)	(4)	(5)	(6)
	Exceeding (kgs)	Not exceeding (kgs)	Exceeding (kgs)	Not exceeding (kgs)	£
B(T)	4,000	12,000	-	35,000	247
B(T)	12,000	-	-	-	317
C(T)	4,000	12,000	-	37,000	328
C(T)	12,000	-	-	-	397
D(T)	4,000	12,000	-	39,000	392
D(T)	12,000	-	-	-	462
E(T)	4,000	12,000	-	-	575
E(T)	12,000	-	-	-	645
Vehicle excise duty band	Plated gross weight of trailer	Plated gross weight of trailer	Total weight	Total weight	Rate
---	---	---	---	---	---
(1)	(2)	(3)	(4)	(5)	(6)
	Exceeding (kgs)	Not exceeding (kgs)	Exceeding (kgs)	Not exceeding (kgs)	£
B(T)	4,000	12,000	-	27,000	247
B(T)	12,000	-	-	31,000	317
B(T)	12,000	-	31,000	33,000	431
B(T)	12,000	-	33,000	36,000	654
B(T)	12,000	-	36,000	38,000	477
B(T)	12,000	-	38,000	-	649
D(T)	4,000	12,000	-	30,000	392
D(T)	12,000	-	-	33,000	462
D(T)	12,000	-	33,000	36,000	654
D(T)	12,000	-	36,000	38,000	477
D(T)	12,000	-	38,000	-	649
Vehicle excise duty band	Plated gross weight of trailer	Plated gross weight of trailer	Total weight	Total weight	Rate
---	---	---	---	---	---
(1)	(2)	(3)	(4)	(5)	(6)
	Exceeding (kgs)	Not exceeding (kgs)	Exceeding (kgs)	Not exceeding (kgs)	£
B(T)	4,000	10,000	-	29,000	247
B(T)	4,000	10,000	29,000	31,000	311
B(T)	10,000	12,000	-	33,000	247
B(T)	12,000	-	-	36,000	317
B(T)	12,000	-	36,000	38,000	421
B(T)	12,000	-	38,000	-	583
C(T)	4,000	10,000	-	31,000	328
C(T)	4,000	10,000	31,000	33,000	431
C(T)	10,000	12,000	-	35,000	328
C(T)	12,000	-	-	36,000	397
C(T)	12,000	-	36,000	38,000	421
C(T)	12,000	-	38,000	-	583
D(T)	4,000	10,000	-	31,000	392
D(T)	4,000	10,000	31,000	33,000	431
D(T)	4,000	10,000	33,000	35,000	654
D(T)	10,000	12,000	-	36,000	392
D(T)	10,000	12,000	36,000	37,000	421
D(T)	12,000	-	-	38,000	462
D(T)	12,000	-	38,000	-	583
Vehicle excise duty band	Plated gross weight of trailer	Plated gross weight of trailer	Total weight	Total weight	Rate
---	---	---	---	---	---
(1)	(2)	(3)	(4)	(5)	(6)
	Exceeding (kgs)	Not exceeding (kgs)	Exceeding (kgs)	Not exceeding (kgs)	£
B(T)	4,000	12,000	-	35,000	247
B(T)	12,000	-	-	-	317
C(T)	4,000	12,000	-	37,000	328
C(T)	12,000	-	-	-	397
D(T)	4,000	10,000	-	36,000	392
D(T)	4,000	10,000	36,000	37,000	477
D(T)	10,000	12,000	-	39,000	392
D(T)	12,000	-	-	-	462
E(T)	4,000	10,000	-	38,000	575
E(T)	4,000	10,000	38,000	-	649
E(T)	10,000	12,000	-	-	575

• (2) In that paragraph, in sub-paragraph (7), for “£631” substitute “£654”.

• (3) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2026.

Vehicle excise duty for vehicles with exceptional loads etc

95

• (1) In—

• (a) paragraph 6(2A)(a) of Schedule 1 to VERA 1994 (vehicles with exceptional loads),

• (b) paragraph 9(3) of that Schedule (rigid goods vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle), and

• (c) paragraph 11(3) of that Schedule (tractive unit vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle),

for “£1,643” substitute “£1,703”.

• (2) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2026.

Vehicle excise duty for haulage vehicles other than showman’s vehicles

96

• (1) In paragraph 7(3A) of Schedule 1 to VERA 1994 (which specifies the rate applicable to haulage vehicles other than showman’s vehicles), for £365” substitute “£380”.

• (2) The amendment made by this section has effect in relation to licences taken out on or after 1 April 2026.

Vehicle excise duty: expensive car supplement

97

• (1) In paragraph 1GE of Schedule 1 to VERA 1994 (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)—

• (a) in sub-paragraph (1)(a), for “£40,000” substitute “the applicable amount”, and

• (b) after sub-paragraph (1) insert—

(1A) For the purposes of sub-paragraph (1) “the applicable amount” is— (a) in the case of a vehicle whose applicable CO2 emissions figure in grams per kilometre driven is zero, £50,000, and (b) in any other case, £40,000.

• (2) The amendments made by this section have effect in relation to any licence where the period for which the licence has effect begins on or after 1 April 2026 (whenever the licence is taken out).

Rates of HGV road user levy

98

• (1) Schedule 1 to the HGV Road User Levy Act 2013 (rates of the levy) is amended as follows.

• (2) In paragraph 5, for Table 1 substitute—

Band	Daily rate	Weekly rate	Monthly rate	Half-yearly rate	Yearly rate
A	£3.22	£8.05	£16.10	£96.60	£161
B	£7.74	£19.35	£38.70	£232.20	£387
C	£9.67	£30.95	£61.90	£371.40	£619

• (3) In paragraph 5, for Table 1A substitute—

Band	Daily rate	Weekly rate	Monthly rate	Half-yearly rate	Yearly rate
A	£4.18	£10.45	£20.90	£125.40	£209
B	£10.06	£25.15	£50.30	£301.80	£503
C	£10.74	£40.20	£80.40	£482.40	£804

• (4) The amendments made by this section come into force on 1 April 2026.

Rates of air passenger duty

99

• (1) Section 30 of FA 1994 (air passenger duty: rates) is amended as follows.

• (2) In subsection (1B) (journeys ending in the United Kingdom)—

• (a) in paragraph (a), for “£8” substitute “£8.26”, and

• (b) in paragraph (b), for “£16” substitute “£16.52”.

• (3) In subsection (2) (short-haul journeys)—

• (a) in paragraph (a), for “£15” substitute “£15.49”, and

• (b) in paragraph (b), for “£32” substitute “£33.04”.

• (4) In subsection (2A) (long-haul journeys)—

• (a) in paragraph (a), for “£102” substitute “£105.33”, and

• (b) in paragraph (b), for “£244” substitute “£251.95”.

• (5) In subsection (4A) (ultra-long haul journeys)—

• (a) in paragraph (a), for “£106” substitute “£109.46”, and

• (b) in paragraph (b), for “£253” substitute “£261.25”.

• (6) In subsection (4E) (journeys on aircraft equipped to carry fewer than 19 passengers)—

• (a) in paragraph (za), for “£142” substitute “£146.63”,

• (b) in paragraph (a), for “£142” substitute “£146.63”,

• (c) in paragraph (aa), for “£1,097” substitute “£1132.76”, and

• (d) in paragraph (d), for “£1,141” substitute “£1178.20”.

• (7) The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2027.

Environmental taxes

Rates of climate change levy

100

• (1) In paragraph 42(1) of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy), for the table substitute—

Taxable commodity supplied	Rate at which levy payable if supply is not a reduced-rate supply
Electricity	£0.00827 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility	£0.00827 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state	£0.02175 per kilogram
Any other taxable commodity	£0.06468 per kilogram

• (2) The amendment made by this section has effect in relation to supplies treated as taking place on or after 1 April 2027.

Rates of landfill tax

101

• (1) Section 42 of FA 1996 (amount of landfill tax) is amended as follows.

• (2) In subsection (1)(a) (standard rate), for “£126.15” substitute “£130.75”.

• (3) In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—

• (a) for “£126.15” substitute “£130.75”, and

• (b) for “£4.05” substitute “£8.65”.

• (4) The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2026.

Rate of aggregates levy

102

• (1) In section 16(4) of FA 2001 (rate of aggregates levy), for “£2.08” substitute “£2.16”.

• (2) The amendment made by this section has effect in relation to aggregate subjected to commercial exploitation on or after 1 April 2026.

Aggregates levy: amendments relating to disapplication of levy to Scotland

103

Schedule 14 (aggregates levy: amendments relating to disapplication of levy to Scotland) has effect.

Rate of plastic packaging tax

104

• (1) In section 45(1) of FA 2021 (rate of plastic packaging tax), for “£223.69” substitute “£228.82”.

• (2) The amendment made by this section has effect in relation to packaging components produced in, or imported into, the United Kingdom on or after 1 April 2026.

Chemical recycling: mass balance approach

105

• (1) Part 2 of FA 2021 (plastic packaging tax) is amended as follows.

• (2) In section 47(1)(a) (chargeable plastic packaging components)—

• (a) before “proportion” insert “combined”;

• (b) after “recycled plastic” insert “and attributed recycled plastic”.

• (3) In section 49 (meaning of “plastic” and “recycled plastic”)—

• (a) in the heading, for “and “recycled plastic”” substitute “, “recycled plastic” and “attributed recycled plastic””;

• (b) after subsection (2) insert—

(2A) “Attributed recycled plastic” is plastic to which recovered material has been attributed in accordance with a chemical recycling certification scheme.

• (c) after subsection (7) insert—

(7A) Plastic is not to be taken as attributed recycled plastic unless it is shown that it is attributed recycled plastic.

• (d) in subsection (8), for “and “recycled plastic”” substitute “, “recycled plastic” and “attributed recycled plastic””;

• (e) in subsection (10), after “recycled plastic” insert “or attributed recycled plastic”.

• (4) After section 49 insert—

(49A) (1) For the purposes of this Part, a scheme is a “chemical recycling certification scheme” if— (a) it is a scheme under which a certified person produces plastic from recovered material and other material by means of one or more mass balance processes, (b) that process or (as the case may be) at least one of those processes alters the chemical structure of the recovered material, and (c) the scheme meets such conditions as may be specified in regulations made by the Commissioners. (2) A “mass balance process” is a process under which— (a) qualifying input material is added to other material to form a mixture (“the mixture”), (b) the mixture is processed, and (c) a certified person attributes recovered material to— (i) material withdrawn from the mixture after the processing, and (ii) any waste material. (3) The certified person may attribute recovered material under subsection (2)(c) in any way, provided that— (a) the quantity of recovered material so attributed does not exceed the quantity of qualifying input material added to the mixture under subsection (2)(a), (b) the proportion of withdrawn fuel to which recovered material is attributed is the same as the proportion of the mixture (before it is processed) that is qualifying input material, and (c) the attribution meets such conditions as may be specified in regulations made by the Commissioners. (4) In subsections (2) and (3) “qualifying input material” means— (a) recovered material, or (b) material to which recovered material has been attributed under subsection (2)(c) in connection with an earlier mass balance process. (5) In this section— - “certified person” means a person certified under a chemical recycling certification scheme; - “consumed fuel” means fuel added to the mixture that is consumed to provide energy for the processing of the mixture; - “process losses” means material, other than consumed fuel, added to the mixture which is converted to waste products as part of the processing (and which is not withdrawn from the mixture); - “waste material” means any consumed fuel and process losses; - “withdrawn fuel” means material withdrawn from the mixture after processing that—is fuel, ormight reasonably be expected to be reprocessed (otherwise than as part of a mass balance process) into fuel. (6) The Commissioners may by regulations— (a) make provision about cases in which the chemical structure of recovered material is to be regarded as having been altered, or not altered, for the purposes of subsection (1)(b); (b) make provision about materials which are, or are not, to be regarded as withdrawn fuel for the purposes of this section. (49B) The conditions that may be specified under section 49A(1)(c) (scheme conditions) include, in particular, conditions about— (a) the assessment of the scheme by an accreditation body specified, or of a description specified, in the regulations; (b) the types of material that may be used in a mass balance process under the scheme; (c) when, and the circumstances in which, materials may be mixed together as part of a mass balance process under the scheme; (d) the methodology that may be used as part of a mass balance process under the scheme in connection with the calculation of amounts of waste material (within the meaning of section 49A); (e) the measurement of materials under a mass balance process under the scheme; (f) the operation of a mass balance process under the scheme by reference to accounting periods or other periods of time; (g) which persons are required to be certified under the scheme; (h) the accreditation of certification bodies recognised by the scheme; (i) the keeping and retention of records by persons under the scheme; (j) the auditing of scheme members by certification bodies under the scheme; (k) compliance with, and enforcement of, the scheme rules; (l) the provision of information to HMRC and others regarding compliance by scheme members with the scheme rules.

• (5) In section 83 (interpretation), at the appropriate places insert—

• “attributed recycled plastic” is to be construed in accordance with section 49;

• “chemical recycling certification scheme” is to be construed in accordance with section 49A;

• (6) In section 84(5)(b) (regulations), for “and “recycled plastic”” substitute “, “recycled plastic” and “attributed recycled plastic””.

Pre-consumer plastic

106

In section 49 of FA 2021 (meaning of “plastic” and “recycled plastic”)—

• (a) in subsection (4), in the opening words, omit “pre-consumer plastic or”;

• (b) omit subsection (5).

Sections 105 and 106: commencement

107

• (1) The following come into force on the day on which this Act is passed—

• (a) this section;

• (b) any provision of, or amendment made by, section 105 so far as it confers a power to make regulations or relates to the exercise of such a power.

• (2) The following come into force on 1 April 2027—

• (a) section 105, so far as not brought into force by subsection (1)(b);

• (b) section 106.

Soft drinks industry levy

Rates of levy

108

• (1) In section 36(1) of FA 2017 (rates of soft drinks industry levy)—

• (a) in paragraph (a) (soft drinks that meet higher sugar threshold), for “£2.59” substitute “£2.78”, and

• (b) in paragraph (b) (other soft drinks), for “£1.94” substitute “£2.08”.

• (2) The amendments made by this section have effect in relation to chargeable events occurring on or after 1 April 2026.

Customs duties

Amendment of customs tariff power

109

• (1) Section 8 of TCTA 2018 (the customs tariff) is amended as follows.

• (2) After subsection (3) insert—

(3A) The provision that the customs tariff may make under subsection (1)(c), by virtue of section 32(7), includes provision specifying different rates of import duty applicable to goods falling within a code by reference to their nature, origin or any other factor.

• (3) After subsection (8) insert—

(9) Regulations under this section may amend provision made under section 9 or 10 so as to provide that the rate of import duty that applies to goods in a standard case applies in any specified case to which either of those sections applies (instead of the rate of import duty for the time being applicable by virtue of provision made under either of them).

Dumping and subsidisation investigations

110

• (1) Schedule 4 to TCTA 2018 (dumping of goods or foreign subsidies causing injury to UK industry) is amended as follows.

• (2) In the italic heading before paragraph 9, after “investigation” insert “: request made to TRA”.

• (3) In paragraph 9 (initiation of a dumping or a subsidisation investigation)—

• (a) in sub-paragraph (1)—

• (i) in the opening words, omit “only”;

• (ii) in paragraph (a), omit sub-paragraph (ii) and the “or” before it;

• (b) in sub-paragraph (2)—

• (i) in paragraph (a), omit “in the case of an application under sub-paragraph (1)(a)(i),”;

• (ii) omit paragraph (b).

• (4) After paragraph 9 insert—

(9A) (1) The Secretary of State may, in exceptional circumstances, direct the TRA to initiate a dumping or a subsidisation investigation in relation to goods if the Secretary of State is satisfied that— (a) there is sufficient evidence that— (i) the goods have been or are being dumped in the United Kingdom and the dumping has caused or is causing injury to a UK industry in those goods, or (ii) as the case may be, the goods have been or are being imported into the United Kingdom and are subsidised, and the importation of the subsidised goods has caused or is causing injury to a UK industry in those goods, and (b) it appears from that evidence that— (i) the volume of dumped goods (whether actual or potential), and the injury, is more than negligible, and the margin of dumping in relation to those goods is more than minimal, or (ii) as the case may be, the volume of subsidised goods (whether actual or potential), and the injury, is more than negligible, and the amount of the subsidy in relation to those goods is more than minimal. (2) Regulations may make provision about— (a) the giving of directions under sub-paragraph (1), including in particular provision about— (i) the form and content of directions; (ii) when directions are made for the purposes of sub-paragraph (1); (iii) the publication of directions; (b) what constitutes or does not constitute “negligible” and “minimal” for the purposes of sub-paragraph (1)(b)(i) or (ii); (c) how it is to be determined for those purposes whether those thresholds have been exceeded. (3) Before giving a direction under sub-paragraph (1), the Secretary of State must consult the TRA. (4) The TRA must comply with a direction given under sub-paragraph (1). (5) Where the Secretary of State gives a direction under sub-paragraph (1) in respect of a dumping investigation, the TRA must take the following steps in the order in which they are set out— (a) notify the governments of the relevant foreign countries or territories; (b) initiate the investigation; (c) publish notice that it has initiated the investigation (including notice of the goods which are the subject of the investigation); (d) notify the Secretary of State and interested parties (see paragraph 32(3)) accordingly. (6) Where the Secretary of State gives a direction under sub-paragraph (1) in respect of a subsidisation investigation, the TRA must take the following steps in the order in which they are set out— (a) invite the governments of the relevant foreign countries or territories to participate in consultations; (b) initiate the investigation; (c) publish notice that it has initiated the investigation (including notice of the goods which are the subject of the investigation); (d) notify the Secretary of State and interested parties accordingly. (7) Notices under sub-paragraphs (5)(c) and (d) and (6)(c) and (d) must specify the date of the initiation of the investigation. (8) Nothing in this paragraph prevents the Secretary of State from directing the TRA to initiate both a dumping investigation and a subsidisation investigation in relation to the same goods if the requirements of sub-paragraph (1)(a) and (b) are met in the case of each investigation. (9) In this paragraph “relevant foreign country or territory” means— (a) in the case of a direction to initiate a dumping investigation, the exporting foreign country or territory (within the meaning of paragraph 1(2)) of the alleged dumped goods; (b) in the case of a direction to initiate a subsidisation investigation, a foreign country or territory within whose territory is located a foreign authority which is alleged to have granted one or more of the subsidies in question.

• (5) In paragraph 10(2) (conduct of a dumping or a subsidisation investigation), after paragraph (d) insert—

(da) the information which must or may be provided or made available by the Secretary of State to the TRA or others in connection with the giving of a direction to initiate a dumping or a subsidisation investigation;

• (6) In paragraph 17(8B) (TRA’s duty to recommend an anti-dumping amount or countervailing amount)—

• (a) for “The Secretary of State may by regulations” substitute “Regulations may”;

• (b) after “specified circumstances, to” insert “give or”.

• (7) In paragraph 18 (TRA's recommendations about an anti-dumping amount or a countervailing amount)—

• (a) in sub-paragraph (6), omit paragraph (b) and the “or” before it;

• (b) after sub-paragraph (6) insert—

(6A) Regulations may provide that a recommendation must be such that an anti-dumping amount or a countervailing amount applicable to goods does not exceed a specified amount that is lower than the amount referred to in sub-paragraph (6)(a).

• (c) in sub-paragraph (7) omit the words from “for the purposes of” to the end and insert “about how an amount specified in regulations under sub-paragraph (6A) is to be determined by the TRA”.

Safeguarding investigations

111

• (1) Schedule 5 to TCTA 2018 (increase in imports causing serious injury to UK producers) is amended in accordance with subsections (2) to (5).

• (2) In the italic heading before paragraph 7, after “investigation” insert “: request made to TRA”.

• (3) In paragraph 7 (initiation of a safeguarding investigation)—

• (a) in sub-paragraph (1)—

• (i) in the opening words, omit “only”;

• (ii) in paragraph (a), omit sub-paragraph (ii) and the “or” before it;

• (b) in sub-paragraph (2)—

• (i) in paragraph (a), omit “in the case of an application under sub-paragraph (1)(a)(i),”;

• (ii) omit paragraph (b);

• (c) in sub-paragraph (3)—

• (i) in paragraph (a), omit “in the case of an application under sub-paragraph (1)(a)(i),”;

• (ii) omit paragraph (b).

• (4) After paragraph 7 insert—

(7A) (1) The Secretary of State may direct the TRA to initiate a safeguarding investigation in relation to goods if the Secretary of State is satisfied that there is sufficient evidence that— (a) the goods have been or are being imported into the United Kingdom in increased quantities, and (b) the importation of the goods in increased quantities has caused or is causing serious injury to UK producers of those goods. (2) A direction given under sub-paragraph (1) may be accompanied by a preliminary adjustment plan setting out how UK producers of the goods might be able to adjust to the importation of the goods in increased quantities. (3) Regulations may make provision about— (a) the giving of directions under sub-paragraph (1), including in particular provision about— (i) the form and content of directions; (ii) when directions are made for the purposes of sub-paragraph (1); (iii) the publication of directions; (b) the form and content of a preliminary adjustment plan. (4) Before giving a direction under sub-paragraph (1), the Secretary of State must consult the TRA. (5) The TRA must comply with a direction given under sub-paragraph (1). (6) Where the Secretary of State gives a direction under sub-paragraph (1) in respect of a safeguarding investigation, the TRA must take the following steps in the order in which they are set out— (a) initiate the investigation; (b) publish notice that it has initiated the investigation (including notice of the goods which are the subject of the investigation); (c) notify the Secretary of State and interested parties (see paragraph 31(3)) accordingly. (7) Notices under sub-paragraph (6)(b) and (c) must specify the date of the initiation of the investigation.

• (5) In paragraph 16 (final affirmative determination), for sub-paragraph (6) substitute—

(6) But the requirement in sub-paragraph (5)(b) does not apply in a case where— (a) the safeguarding investigation was initiated in accordance with paragraph 7 (application made by or on behalf of UK producers) and the TRA waived the requirement for the application to initiate the safeguarding investigation to be accompanied by a preliminary adjustment plan, or (b) the safeguarding investigation was initiated in accordance with paragraph 7A (Secretary of State direction) and the TRA waives the requirement in sub-paragraph (5)(b) of this paragraph.

• (6) Schedule 5A to TCTA 2018 (increase in imports as a result of free trade agreement causing serious injury to UK producers) is amended in accordance with subsections (7) and (8).

• (7) In paragraph 5 (initiation of a bilateral safeguarding investigation), for sub-paragraphs (3) and (4) substitute—

(3) Sub-paragraph (2) is to be read as if in paragraph (a)— (a) for “the TRA” there were substituted “the Secretary of State”; (b) for “applicant UK producers” there were substituted “UK producers of the goods”. (4) Sub-paragraph (3) is to be read as if in paragraph (a), for “the applicant UK producers think they” there were substituted “UK producers of the goods”.

• (8) After paragraph 5 insert—

(5A) Paragraph 7A (Secretary of State direction to initiate safeguarding investigation) does not apply.

• (9) This section and section 110 come into force on such day as the Secretary of State may by regulations made by statutory instrument appoint; and different days may be appointed for different purposes.

Customs facilities at approved wharves and other places

112

• (1) Section 20 of CEMA 1979 (approval of wharves) is amended as follows.

• (2) In subsection (1A)—

• (a) omit the “or” after paragraph (a),

• (b) after paragraph (a) insert—

(aa) impose conditions, or specify conditions which may be imposed, after an approval has been granted,

• (c) after paragraph (b) insert—

(c) specify restrictions— (i) that apply in all cases, or (ii) which may be imposed, in any particular case, at the time of the approval, (d) impose restrictions, or specify restrictions which may be imposed, after an approval has been granted, or (e) provide for the imposition of conditions or restrictions by direction made by the Commissioners.

• (3) After subsection (1B) insert—

(1C) Conditions and restrictions which may be imposed by or specified in regulations under subsection (1A) include— (a) conditions requiring the provision at the place approved under subsection (1) of specified facilities, services or infrastructure for purposes in connection with facilitating the administration, collection or enforcement of any duty of customs, (b) conditions requiring the provision of specified facilities, services or infrastructure for such purposes otherwise than at the place approved under subsection (1), including conditions— (i) requiring that provision at a specified place, (ii) requiring a person to whom an approval has been, or may be, given to propose a place at which facilities, services or infrastructure are to be provided, and (iii) requiring the agreement of the Commissioners to any proposal for the provision of facilities, services or infrastructure at a place, and (c) conditions and restrictions as respects the movements of goods between a place approved under subsection (1) and an off-site facility. (1D) For the purposes of subsection (1C)(a) and (b) “specified” means specified in— (a) the regulations, (b) an approval under subsection (1), or (c) a direction. (1E) For the purposes of this section and section 20A, an “off-site facility” means a place at which facilities, services or infrastructure are provided (in accordance with an approval or conditions attaching to it) other than a place approved under subsection (1).

• (4) Section 20(A) of CEMA 1979 (approved wharves) is amended as follows.

• (5) Renumber that section as section 20A.

• (6) In subsection (1)—

• (a) in paragraph (a), for “20” substitute “20(1)”, and

• (b) after that paragraph insert

or (aa) an off-site facility.

• (7) In subsection (1A), after “imposed” insert “by or”.

• (8) The amendments made by this section come into force on the day on which this Act is passed.

• (9) But CEMA 1979 continues to have effect, for any purpose in connection with duty under section 30A(3) or 40A of TCTA 2018, as if the amendments made by this section had not been made.

Economic crime (anti-money laundering) levy

Increases to rates of levy

113

• (1) In section 54 of FA 2022 (charge to the levy)—

• (a) in subsection (1)(b), for the words from “is” to the end substitute “is in any of the bands set out in section 55”, and

• (b) in subsection (2)—

• (i) in paragraph (a), for “medium” substitute “in band A” and for “£10,000” substitute “£10,200”,

• (ii) in paragraph (b), for “large” substitute “in band B”,

• (iii) after paragraph (b) insert—

(ba) in the case of a person whose UK revenue for the financial year is in band C, £500,000;

, and

• (iv) in paragraph (c), for “very large” substitute “in band D” and for “£500,000” substitute “£1million”.

• (2) In section 55 of FA 2022 (UK revenue: amount), in subsection (1)—

• (a) in paragraph (a), for “medium” substitute “in band A”,

• (b) in paragraph (b), for “large” substitute “in band B” and for “£1billion” substitute “£500 million”,

• (c) after paragraph (b) insert—

(ba) is in band C for a financial year if the person’s UK revenue for the relevant accounting period is more than £500 million but not more than £1 billion;

, and

• (d) in paragraph (c), for “very large” substitute “in band D”.

• (3) In consequence of the amendments made by the preceding subsections, in section 189 of the Economic Crime and Corporate Transparency Act 2023, in subsections (3)(b)(ii) and (11) (which operate by reference to provisions amended by this section), for “large or very large” substitute “in any of bands B to D”.

• (4) The amendments made by this section have effect for the financial year beginning with April 2026 and subsequent financial years.

Annual tax on enveloped dwellings

Removal of time limit to claim relief under section 106(3) of FA 2013

114

• (1) In section 106 of FA 2013 (adjustment of amount chargeable), omit subsection (6).

• (2) The amendment made by this section is treated as always having been in force.

Part 4 — Vaping products duty

Charge

Excise duty: charge

115

• (1) An excise duty is charged on vaping products produced in, or imported into, the United Kingdom.

• (2) The duty is charged at a rate of £2.20 per 10 millilitres, rounded down to the nearest penny.

• (3) In this Part, “vaping products duty” means excise duty charged under this section.

Vaping products

116

• (1) In this Part, “vaping product” means a liquid that—

• (a) contains nicotine and either or both of glycerine and a glycol, or

• (b) is intended to be vaporised by a vape,

and is not a medicinal product or a tobacco product.

• (2) For the purposes of this Part—

• (a) a liquid may be intended to be vaporised by a vape even if a consumer would be required to mix it with another substance before vaporising it by a vape;

• (b) a reference to vaporisation includes a reference to aerosolisation;

• (c) a reference to a liquid includes a reference to a liquid that has been frozen.

Production of vaping products

117

• (1) For the purposes of this Part, a vaping product is produced if—

• (a) a substance that is not duty-paid is—

• (i) combined or mixed with another substance (whether or not that substance is duty-paid), or

• (ii) otherwise processed, and

• (b) the resulting substance is a vaping product.

• (2) If a liquid that is not duty-paid is packaged, labelled or advertised so as to indicate it is intended to be vaporised by a vape, the act of packaging, labelling or advertising is to be treated, for the purposes of this Part, as producing a vaping product.

• (3) In this section, a reference to a substance or liquid that is not duty-paid is a reference to a substance or liquid that—

• (a) is not a vaping product, or

• (b) is a vaping product on which duty has not been paid or deferred under a duty deferment arrangement.

• (4) Vaping products must not be produced except in accordance with regulations under section 45 of TCTA 2018.

Excise duty point and payment

118

Vaping products duty is to be paid, and the amount chargeable is to be determined and become due, in accordance with provision made by or under—

• (a) section 1 of F(No.2)A 1992 (powers to fix excise duty point);

• (b) section 45 of TCTA 2018 (general power for excise duty purposes etc).

Administration

Administration

119

• (1) The Commissioners are responsible for the collection and management of vaping products duty.

• (2) For the purposes of this Part, the Commissioners may by regulations make provision—

• (a) requiring vaping products to be held in duty suspense arrangements, including in premises of a kind specified in the regulations;

• (b) requiring the giving of a guarantee or other security;

• (c) for exceptions to sections 129 to 131 (offences);

• (d) about civil penalties and forfeiture, including provision for exceptions and joint and several liability;

• (e) about appeals, including provision amending FA 1994.

Duty stamps

Stamping of vaping products

120

• (1) A vaping product must be stamped in accordance with regulations made under this Part and section 45 of TCTA 2018.

• (2) For the purposes of this Part, a vaping product is stamped if a duty stamp is affixed to—

• (a) the vaping product, or

• (b) the retail packaging of the vaping product,

and a reference to a stamp being affixed to a vaping product includes a reference to a stamp being affixed to its retail packaging.

• (3) The Commissioners may by regulations make provision—

• (a) requiring a stamp to be linked to a particular vaping product;

• (b) specifying information to be provided to HMRC for the purpose of paragraph (a) or otherwise in connection with a stamped vaping product.

• (4) In this Part, a “duty stamp” means a document issued by the Commissioners that—

• (a) is designed to be affixed to a vaping product or the retail packaging of a vaping product,

• (b) is uniquely identifiable, and

• (c) indicates that the product to which it is affixed is liable to vaping products duty.

Issue and management of duty stamps

121

• (1) The Commissioners must make arrangements for the issue and management of duty stamps.

• (2) The Commissioners may by regulations provide for the charging of fees in connection with the issue and management of duty stamps (but such a fee may not offset any liability to vaping products duty).

• (3) The Commissioners may by published notice authorise a person to act as a stamp issuer for the purposes of this Part.

• (4) In this Part, “stamp issuer” means—

• (a) a person authorised under subsection (3), or

• (b) if no person is authorised, the Commissioners.

Approved stamp holders

122

• (1) A duty stamp may not be issued to a person who is not approved under this section.

• (2) The Commissioners may approve a person if they are satisfied that the person—

• (a) has a fixed place of business in the United Kingdom, and

• (b) meets such other requirements as may be specified in regulations under section 45 of TCTA 2018.

• (3) An approved stamp holder may not transfer a duty stamp to any person before it has been affixed to, and activated in respect of, a vaping product (in which case it may be transferred as part of the vaping product).

• (4) Subsection (3) does not prevent the return of stamps to a stamp issuer.

• (5) The Commissioners may by regulations make provision—

• (a) about what it means to have a fixed place of business in the United Kingdom;

• (b) for exceptions to subsection (3);

• (c) limiting the number of duty stamps that may be issued to (or, in the case of an overseas person, in respect of) a person within a specified period;

• (d) permitting or requiring duty stamps to be voided, destroyed or returned in certain circumstances, including on the expiry of a specified period.

United Kingdom representatives

123

• (1) The Commissioners may approve an approved stamp holder to represent a person who does not have a fixed place of business in the United Kingdom.

• (2) A duty stamp may, at the request of a UK representative, be issued to the UK representative by way of delivery to an overseas person.

• (3) A UK representative is responsible for a stamp issued as described in subsection (2) from the point at which it is delivered to the overseas person.

• (4) Section 122(3) (restriction on transfer) does not apply in relation to the transfer of a duty stamp between a UK representative and an overseas person.

• (5) A UK representative who transfers a duty stamp to an overseas person remains responsible for the stamp after transfer.

• (6) For the purposes of subsections (3) and (5), a person who is responsible for a stamp is also liable to penalties arising under this Part or regulations made under this Part in respect of it.

• (7) The Commissioners may by regulations make provision about UK representatives, including provision—

• (a) about their dealings with an overseas person and what it means to be responsible for duty stamps, and

• (b) providing for exceptions to this section.

• (8) In this Part—

• “overseas person” means, when used in connection with a UK representative, someone in respect of whom the UK representative is approved under subsection (1);

• “UK representative” means a person approved under subsection (1),

and a reference to a stamp being delivered to an approved stamp holder includes, in the case of a UK representative, a reference to a stamp being delivered to an overseas person.

Forfeiture

Forfeiture

124

• (1) The following things are liable to forfeiture—

• (a) an unstamped vaping product;

• (b) an invalid duty stamp and any product to which an invalid duty stamp is affixed;

• (c) a duty stamp that, after the end of the period of 12 months beginning with the day on which it was issued, has not been—

• (i) affixed to, and activated in respect of, a vaping product, or

• (ii) returned to a stamp issuer.

• (2) In subsection (1)(b), an “invalid duty stamp” means—

• (a) a duty stamp which has been altered after it has been issued;

• (b) a document which purports to be (but is not) a duty stamp;

• (c) a voided duty stamp.

• (3) For things that are liable to forfeiture only in particular circumstances, see—

• (a) section 128 (civil penalties);

• (b) section 133 (criminal offences).

Civil penalties and enforcement

Dealing in unstamped vaping products

125

• (1) A person who sells, offers for sale or otherwise deals in unstamped vaping products packaged for retail sale is liable to a penalty.

• (2) The penalty under subsection (1) is the amount indicated in the table, to be determined by cross-referencing—

• (a) the number of units in respect of which the penalty is imposed, and

• (b) whether it is the first, second or further time that the person has been liable to a penalty under subsection (1) since the beginning of the relevant period.

	1 to 99 units	100 to 299 units	300 to 499 units	500 units or more
First time	£2,500	£5,000	£7,500	£10,000
Second time	£5,000	£7,500	£10,000	£10,000
Further time	£7,500	£10,000	£10,000	£10,000

• (3) For the purpose of determining a penalty under subsection (2)—

• “relevant period” means the period of 24 months ending with the day on which the person becomes liable to the penalty being determined;

• “unit” means an amount of vaping product packaged for individual retail sale.

Loss and misuse of duty stamps

126

• (1) An approved stamp holder to whom a duty stamp is issued and delivered is liable to a penalty if—

• (a) the stamp is lost, or

• (b) at the end of the period of 12 months beginning with the day on which the stamp was issued, the stamp has not been—

• (i) affixed to, and activated in respect of, a vaping product,

• (ii) returned to a stamp issuer, or

• (iii) destroyed.

• (2) Subsection (1) does not apply if the stamp was lost in circumstances where the approved stamp holder—

• (a) did not cause the loss, and

• (b) took all reasonable steps to protect against the loss.

• (3) The penalty under subsection (1) is an amount equal to five times the monetary amount specified in section 115 (excise duty: charge).

• (4) The following is conduct which attracts a penalty under section 9 of FA 1994—

• (a) altering a duty stamp after it has been issued;

• (b) affixing an invalid duty stamp to a vaping product.

• (5) In this section, an “invalid duty stamp” means—

• (a) a duty stamp which has been altered after it has been issued;

• (b) a document which purports to be (but is not) a duty stamp;

• (c) a voided duty stamp.

Failure to comply with this Part etc

127

• (1) Failure to comply with a provision or requirement specified in subsection (2) is conduct which attracts a penalty under section 9 of FA 1994.

• (2) The following provisions and requirements are specified for the purpose of subsection (1)—

• (a) provision contained in this Part or regulations made under this Part;

• (b) provision contained in regulations made under section 45 of TCTA 2018 insofar as it applies in relation to vaping products duty;

• (c) any requirements imposed under such provision.

Forfeiture: civil penalties

128

• (1) This section applies (in addition to section 124) where a person is liable to a penalty under section 125 or 127(1).

• (2) Where a person is liable to a penalty under section 125 (dealing in unstamped vaping products), any stamped vaping product—

• (a) that is in the person’s possession at the time of the conduct in respect of which the liability arises, and

• (b) which the Commissioners have reason to believe is owned or used in the course of a business carried out by any person,

is liable to forfeiture.

• (3) Where a person is liable to a penalty for a failure of a kind described in section 127(1) (failure to comply with this Part etc), the following things are liable to forfeiture—

• (a) any vaping product or duty stamp to which the failure relates, or

• (b) where the failure relates to premises—

• (i) any stamped vaping product found on the premises which the Commissioners have reason to believe is owned or used in the course of a business carried out by any person, and

• (ii) any duty stamp found on the premises.

Offences

Dealing in duty stamps

129

• (1) It is an offence for a person who is not an approved stamp holder to possess a duty stamp that has not been affixed to a vaping product.

• (2) It is an offence for a person to transfer a duty stamp that has not been affixed to a vaping product to another person.

• (3) It is a defence for a person charged with an offence under this section to prove that they did not know, suspect or have reason to suspect that they were possessing or transferring a duty stamp that had not been affixed to a vaping product.

• (4) Subsection (1) and (2) do not apply in relation to—

• (a) a transfer between a UK representative and an overseas person,

• (b) possession by the overseas person, or

• (c) a person providing a delivery service on a commercial basis.

• (5) Subsection (2) does not apply in relation to a transfer to a stamp issuer.

Dealing in unstamped vaping products

130

• (1) It is an offence to—

• (a) possess, transport or display, or

• (b) sell, offer for sale or otherwise deal in,

an unstamped vaping product.

• (2) It is an offence for a person who is a manager of premises to cause or permit the premises to be used for the sale of an unstamped vaping product.

• (3) It is a defence for a person charged with an offence under this section to prove that they did not know, suspect or have reason to suspect that the product to which the charge relates was an unstamped vaping product.

• (4) A manager of premises is a person who—

• (a) is entitled to control their use,

• (b) is entrusted with their management, or

• (c) is in charge of them.

Sales ban following conviction for unlawful use of premises

131

• (1) If a person is convicted of an offence under section 130(2), the court by which the person is convicted of the offence may make an order prohibiting the use of the premises in respect of which the offence was committed for the sale of vaping products.

• (2) The term of the order may not exceed twelve months.

• (3) It is an offence for a manager of premises to cause or permit the premises to be used in breach of an order under this section.

• (4) In this section, “manager of premises” has the meaning given in section 130.

Offences: penalties

132

• (1) A person who commits an offence under sections 129 to 131 is liable on summary conviction—

• (a) in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court, or a fine, or both;

• (b) in Scotland, to imprisonment for a term not exceeding 12 months, or a fine not exceeding the statutory maximum, or both;

• (c) in Northern Ireland, to imprisonment for a term not exceeding six months, or a fine not exceeding the statutory maximum, or both.

• (2) A person who commits an offence under sections 129 to 131 is liable, on conviction on indictment, to imprisonment for a term not exceeding 2 years, or a fine, or both.

Forfeiture: offences

133

• (1) This section applies (in addition to section 124) where a person has committed an offence under sections 129 to 131.

• (2) In the case of an offence under section 129 (dealing in duty stamps), the following things are liable to forfeiture—

• (a) any duty stamp in relation to which the offence is committed, and

• (b) any duty stamp that is not affixed to a vaping product and that is in the person’s possession at the time the offence is committed.

• (3) In the case of an offence under section 130(1) (dealing in unstamped vaping products), any stamped vaping product—

• (a) that is in the person’s possession at the time the offence is committed, and

• (b) which the Commissioners have reason to believe is owned or used in the course of a business carried out by any person,

is liable to forfeiture.

• (4) In the case of an offence under section 130(2) or 131 (unlawful use of premises), any stamped vaping product—

• (a) that is on the premises at the time the offence is committed, and

• (b) which the Commissioners have reason to believe is owned or used in the course of a business carried out by any person,

is liable to forfeiture.

General provision

Publication of information

134

The Commissioners may publish information provided to HMRC under section 120(3)(b) (stamping of vaping products) for the purpose of enabling retailers, consumers and other persons to assess whether a duty stamp has been activated in respect of a vaping product.

Information sharing

135

• (1) The Commissioners may disclose such information as the Commissioners consider appropriate in connection with—

• (a) the Commissioners’ functions relating to vaping products duty, or

• (b) the recipient’s functions relating to vaping products duty.

• (2) Any person with functions relating to vaping products duty may disclose to HMRC such information as the person considers appropriate in connection with—

• (a) the Commissioners’ functions relating to vaping products duty, or

• (b) the person’s functions relating to vaping products duty.

• (3) A person who receives information from the Commissioners as a result of this section may not—

• (a) use the information for a purpose other than the purpose for which it was disclosed, or

• (b) further disclose the information,

except with the consent of the Commissioners (which may be general or specific).

• (4) If—

• (a) a person discloses information in contravention of subsection (3)(b), and

• (b) the information relates to a person whose identity is specified in, or can be deduced from, the disclosure,

section 19 of CRCA 2005 (offence of wrongful disclosure) applies in relation to that disclosure as it applies in relation to a disclosure of information in contravention of section 20(9) of that Act.

• (5) Nothing in this section limits the circumstances in which information may be disclosed under section 18(2) of CRCA 2005 or under any other enactment or rule of law.

• (6) In this section, a reference to the Commissioners or HMRC include a reference to anyone acting on their behalf.

Investigation and enforcement

136

• (1) A local enforcement authority may investigate compliance with this Part, regulations made under this Part and regulations made under section 45 of TCTA 2018 in relation to vaping products duty, and may carry out inspections of vaping products for that purpose.

• (2) In this section, “local enforcement authority” means—

• (a) in Great Britain, a local weights and measures authority within the meaning of section 69 of the Weights and Measures Act 1985;

• (b) in Northern Ireland, a district council.

Regulations: further provision

137

• (1) Regulations under this Part may—

• (a) confer a discretion on any specified person to do anything under, or for the purposes of, the regulations;

• (b) make provision by reference to things specified in a notice published in accordance with the regulations;

• (c) make supplementary, incidental and consequential provision;

• (d) make transitional or transitory provision and savings.

• (2) A power to make regulations under this Part, or a power to exercise a discretion or publish a notice under regulations made under this Part, may be exercised—

• (a) in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified case or description of case;

• (b) so as to make different provision for different purposes or areas.

• (3) A notice published under this Part may be withdrawn or revised by further published notice.

• (4) A power to make regulations under this Part does not restrict any power to make legislation under any other enactment relating to excise duty.

Regulations: procedure

138

• (1) Regulations under this Part must be made by statutory instrument.

• (2) A statutory instrument containing regulations under this Part is subject to made affirmative procedure if it contains (whether alone or with other provision) provision that—

• (a) amends an Act of Parliament,

• (b) restricts any rebate of or relief from vaping products duty, or

• (c) extends the cases in which vaping products are required to be stamped.

• (3) Where a statutory instrument is subject to made affirmative procedure—

• (a) it must be laid before the House of Commons after being made, and

• (b) it ceases to have effect at the end of the period of 28 days beginning with the day on which the instrument is made, unless within that period the instrument is approved by a resolution of the House of Commons.

• (4) Where a statutory instrument ceases to have effect as a result of subsection (3), that does not—

• (a) affect the validity of anything previously done under the instrument, or

• (b) prevent the making of a new statutory instrument.

• (5) In calculating the period of 28 days for the purposes of subsection (3), no account is to be taken of any whole days that fall within a period during which—

• (a) Parliament is dissolved or prorogued, or

• (b) the House of Commons is adjourned for more than 4 days.

• (6) A statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of the House of Commons if it does not contain provision of a kind described in subsection (2).

• (7) Subsections (2) to (6) do not apply to regulations made under section 141 (commencement and transitional provision).

Amendments of other enactments

139

Schedule 15 contains amendments of other enactments.

Interpretation

140

In this Part—

• “activated”, in relation to a duty stamp, means linked to a particular vaping product in accordance with regulations made under section 120 and section 45 of TCTA 2018;

• “approved stamp holder” means a person approved under section 122 (approved stamp holders);

• “Commissioners” means the Commissioners for His Majesty’s Revenue and Customs;

• “duty deferment arrangement” means provision made by or under the customs and excise Acts that permits the payment of excise duty to be deferred;

• “duty stamp” has the meaning given in section 120(4);

• “HMRC” means His Majesty’s Revenue and Customs;

• “medicinal product” has the meaning given in the Human Medicines Regulations 2012 (S.I. 2012/1916);

• “overseas person” has the meaning given in section 123(8) (United Kingdom representatives);

• “retail packaging”, in relation to a product, means the packaging in which it is, or is intended to be, presented for sale by retail;

• “stamp issuer” has the meaning given in section 121(4);

• “stamped vaping product” means a vaping product which is stamped in accordance with this Part and regulations made under section 45 of TCTA 2018;

• “tobacco product” has the meaning given in section 1 of TPDA 1979;

• “UK representative” has the meaning given in section 123(8);

• “unstamped vaping product” means a vaping product which is required to be stamped in accordance with this Part and regulations made under section 45 of TCTA 2018, but is not so stamped;

• “vape” means a device that vaporises substances for the purpose of inhalation through a mouthpiece;

• “vaping product” has the meaning given in section 116(1) (but see subsection (2));

• “vaping products duty” has the meaning given in section 115(3).

Commencement and transitional provision

141

• (1) Section 115 comes into force on 1 October 2026.

• (2) Section 115 has effect in relation to vaping products that—

• (a) were produced in, or imported into, the United Kingdom before 1 October 2026, and

• (b) are stamped (see section 120(2)),

as though they were produced in, or imported into, the United Kingdom on 1 October 2026.

• (3) Sections 117(4) (production only in accordance with regulations) and 120(1) (duty to stamp in accordance with regulations) come into force on such day as the Treasury may by regulations appoint.

• (4) Section 129 comes into force two months after this Act is passed.

• (5) Sections 130 and 131 (dealing in unstamped vaping products and sales ban) come into force on 1 April 2027, and have effect in relation to vaping products irrespective of when they were produced or imported.

• (6) The Treasury may by regulations provide that, for a specified period, this Part has effect as though—

• (a) a reference to a duty stamp includes a reference to a transitional duty stamp;

• (b) in section 122(3) the words “and activated in respect of” were omitted;

• (c) sections 124(1)(c) and 126(1)(b) were omitted.

• (7) Regulations under subsection (6) may—

• (a) define “transitional duty stamp”;

• (b) make further provision about the specified period and transitional duty stamps.

• (8) The Treasury may by regulations provide that, for a specified period, this Part has effect as though a reference to an approved stamp holder or UK representative is a reference to a person being approved or treated as an approved stamp holder or UK representative.

• (9) Regulations under subsection (8) may make provision about when a person is to be treated as an approved stamp holder or UK representative.

• (10) The Treasury may by regulations extend a period specified in regulations under this section.

• (11) Regulations under subsection (7)(b) may include provision imposing penalties and for forfeiture.

• (12) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Part 5 — Carbon border adjustment mechanism

Introduction

Introduction to CBAM

142

• (1) A tax called the carbon border adjustment mechanism (“CBAM”) is to be charged in accordance with this Part.

• (2) In this Part—

• (a) sections 143 to 150 and Schedule 16 set out the charge to CBAM (and include exemptions and relief);

• (b) section 151 and Schedule 17 provide for the administration and enforcement of CBAM;

• (c) section 152 and Schedule 18 provide for criminal offences relating to CBAM;

• (d) sections 153 to 158 and Schedule 19 make general provision.

The charge

Charge to CBAM

143

• (1) CBAM is charged on the emissions embodied in a CBAM good when the good is imported into the United Kingdom.