Extension of reduced rate for smoking cessation products

1 May 2008

To coincide with the ban on smoking in public places in England, the 5 per cent rate was introduced last year for smoking cessation products supplied over the counter e.g. patches, gums and inhalators. Initially, the reduced rate was to apply only from 1 July 2007 until 30 June 2008. Secondary legislation will now be laid before Parliament for the period to extend beyond 30 June 2008.

The 5 per cent rate applies to all retail sales including those made over the internet. However, such products sold on a prescription continue to be zero-rated.