For retailers

Tobacco and the law – at a glance

If you’re a retailer, it is important to be aware of all the regulations around the sale of tobacco. Breaching these could put your business and reputation in the community at risk.

These include:

Age of sale: from 1st January 2027, anyone born on or after 1st January 2009 will never legally be sold tobacco products. The change marks the first time that an age-restricted sales policy has worked on the basis of checking against a single date, rather than checking whether a person is above a prescribed age on the day of sale. Find out more from the Association of Convenience stores here. 

Illegal tobacco:  The illegal tobacco trade is a problem that enables local children to smoke and brings crime into communities.  As a retailer, if you’re angry about the trade and about rogue traders selling illegal tobacco, you are right to be annoyed – and you can help.

Shops which breach regulations can risk prosecution and court proceedings, large fines and prohibition from selling other age of sale products such as alcohol.  Repeat offending could even result in a closure order meaning they would not be allowed to operate at all.

Read on…

Illegal tobacco. What’s the problem?

The illegal tobacco trade is a problem that enables local children to smoke. The supply of illegal tobacco into the UK is linked to organised criminality and organised smuggling gangs.

While most shops do not sell illegal tobacco – or sell any tobacco to children – figures show that some shops are a source, with a small minority of rogue traders prepared to break the law.

Tobacco companies often claim the illegal tobacco market is out of control. However, although it is still a problem in some areas, the illegal tobacco market as a proportion of the overall tobacco market in the UK has almost halved since 2000.

What is illegal tobacco?

Illegal, or illicit tobacco can take many forms:

• Illicit whites – brands which have no legal market in the UK, often originating from Eastern Europe or the Middle East
• Non-UK duty paid – genuine UK brands brought into the country and sold without duty being paid
• Counterfeit – illegally manufactured and made to look like recognised brands

How does illegal tobacco harms communities?

While all tobacco kills, illegal tobacco is a problem because:

• It bypasses the age of sale law which most honest retailers abide by, making it easier for children to get hold of cigarettes. Children are often aware who is selling it locally and at pocket money prices.
• The illegal tobacco trade is linked to criminals and brings crime into local areas. People supplying it locally are often involved in drugs or loan sharking.
• Tobacco kills 2 in 3 lifelong smokers early and is the biggest cause of cancer in the UK. Cheap tobacco encourages smokers to keep smoking and to smoke more.  It can also break down their willpower to quit.
• It robs local hospitals and schools of money for vital services.

The best way to reduce the illegal tobacco trade is to reduce the overall number of people who smoke tobacco.  There are more ways to quit and more support than ever before with quitting aids such as nicotine replacement, medication and vapes, and support is available through local stop smoking services.

What should I look out for?

Tobacco products that:

• Are branded and not in standardised packaging
• Have unfamiliar brand names
• Have foreign health warnings or no health warnings at all
• Have flaws in packaging
• Are being offered by unexpected salespeople – often linked to criminals
• Are priced cheaply – usually around half the price of legal tobacco

What is the law?

• Until 31^st December 2026, it is against the law to sell tobacco products to anyone under the age of 18.  Retailers should ask for physical identification for proof of age.
• Under the Tobacco and Vapes Act 2026, from 1^st January 2027 it will be illegal to sell tobacco products, herbal smoking products and cigarette papers to anyone born on or after 1^st January 2009. Retailers should ask for identification for proof of age.
• Cigarette packs and hand-rolling tobacco packs must be supplied in line with Standardised Packaging of Tobacco Products Regulations 2015 and Tobacco and Related Products Regulations 2016.
• The sale of illegal tobacco contravenes the Tobacco Products Duties Act 1979.
• Counterfeit tobacco products also contravene the Trade Marks Act 1994.
• The sale of loose cigarettes is illegal. The minimum pack size contains 20 cigarettes.
• All retailers of tobacco products are required to display a statutory notice visible at the point of sale.
• People travelling to the UK can bring in a limited amount of tobacco products from other countries only for their own personal use. Possession is legal; re-sale is illegal.
• Tobacco purchased over the internet must have the UK duty accounted for before the products are sent to the UK.
• There is a distinction between possession of a non-compliant product for supply (an offence under Trade Marks Act and Tobacco and Related Products Regulations which is treated the same as selling) and possession for personal use which is not an offence.
• For more information visit businesscompanion.info and search for ‘tobacco.’

Tracking and tracing

Tobacco is now subject to tighter regulations which track products through the supply chain.  Tobacco packaging must have specific security features and all tobacco retailers must have an economic operator ID to sell tobacco – HMRC has guidance on selling and storing tobacco products.

 What are the penalties for selling illegal tobacco?

As well as potentially losing their alcohol licence or lottery terminal, shops that sell illegal tobacco can face:

• A significant fine or up to two years imprisonment for breaching Standardised Packaging of Tobacco Products Regulations 2015 or Tobacco and Related Products Regulations 2016.
• Fines of up to £10,000 for selling cigarettes or tobacco which do not comply with the Track and Trace Regulations
• Up to £5,000 fine for sale of tobacco without a fiscal mark.
• Up to £1,000 for sale of loose cigarettes (e.g. selling singles)
• Up to £1,000 for failure to display the correct statutory notice
• Up to £2,500 fine for selling tobacco to under 18s: Repeat offenders risk a restricted premises order, a restricted sales order or both. Breaching these can mean a fine of up to £20,000.
• The maximum penalty for trade marks offences is 10 years imprisonment.

Additional penalties for breaching tobacco legislation will be introduced through the Tobacco and Vapes Act 2026.

Shops suspected of selling illegal tobacco can be subject to raids by HMRC or Trading Standards with sniffer dogs and if caught, also face publicity and loss of community reputation over raids and court action.

How can I keep my business safe?

By being aware and supporting the Keep It Out campaign you will help to reduce the supply of and demand for illicit tobacco in your area and prevent underage sales.  There are a number of ways you can do this:

• talk to your colleagues about the laws relating to tobacco
• talk to your customers so that they are aware of the issues relating to illegal tobacco and to show you are taking a stand
• report any intelligence you have about suspicious activity – whether sales by other rogue shops, tab houses or sales in pubs or clubs – or any approaches you may have had by rogue sellers offering large quantities of tobacco for onward sale.  You can pass on information confidentially by calling 0300 999 0000, visiting the reporting page on this site or by contacting your local Trading Standards service.