HMRC introduces new excise regulations

Tuesday, March 30th 2010

Britons who do not pay proper excise duty on items they buy abroad will face new regulations, which come into force on April 1st.

Exchequer secretary to the Treasury Sarah McCarthy-Fry explained: "Defrauding excise is not worth the risk. The changes we are introducing this week make the tax system fairer because they help us crack down on those who try to avoid paying tax."

HM Revenue & Customs (HMRC) will penalise those who try to abuse the tax system, such as Britons who buy alcohol or cigarettes on holiday and sell them on without properly paying duties.

A proportion of the revenue lost by the Exchequer must be paid by anyone caught, which could be between ten and 100 per cent of the total.

HMRC explains that cigars, cigarettes, chewing tobacco, hand-rolling rolling tobacco and pipe tobacco are all liable to tobacco products duty.

However, herbal smoking products and snuff do not currently fall into this category.