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Stop smoking!
With effect from 1 July 2007, the supply of smoking cessation products will be eligible for the reduced rate of VAT (5%). This relief will be in force for one year and its introduction will coincide with the ban on smoking in public places in England. A new group will be added to Schedule 7A to the VAT Act 1994 to introduce the reduced rate to supplies of smoking cessation products, which are pharmaceutical products designed to help people to stop smoking tobacco. The rate will apply to non-prescribed sales of nicotine patches, nicotine gums, nicotine inhalators, lozenges and other pharmaceutical products held out for sale for the primary purpose of helping people to stop smoking. The supply of smoking cessation products on a prescription by a medical practitioner will continue to be zero rated.
HMRC Brief 48/07, 26 June 2007
