Chapter TPD19090
| Published date | 15 April 2016 |
| Record Number | TPD19090 |
| Court | HM Revenue & Customs |
| Issuer | HM Revenue & Customs |
The duty on cigarettes has two components:
- an ad valorem rate (percentage of the retail selling price); and
- a specific rate per 1000 cigarettes.
For the purposes of calculating the ad valorem component of the duty, the retail selling price will usually be that recommended by the UK importer (as evidenced by the importer’s price list). Note: the use for duty purposes of a retail selling price, other than that recommended by the UK importer, must be authorised by the Tobacco team, Ralli Quays.
The retail price will normally refer to packets of twenty cigarettes. Where a brand is sold only in ‘non-standard’ packs (for example one containing 25 cigarettes), the importer’s recommended retail selling price for that pack size may be accepted.
Some brands of cigarettes are sold in more than one pack size: for example the majority of sales may be in packets of 20 but the same brand may be sold in packets of 25 or in adifferent size vending pack (eg containing 18 cigarettes). In such cases the ad valorem component of the duty will still be based on the recommended selling price (RSP) for the 20 size pack. To derive a price for non-standard packs you should apply the RSP for twenty cigarettes on a pro rata basis. For example: if the RSP for a packet of 20 cigarettes is £4.50, then the RSP (for duty purposes) of a pack of 18 cigarettes of the same brand will be
£4.50 /20 x 18 = £4.05. Any request for different treatment; for example, claiming that packets of 25 (of brand sold in packets of twenty) constitute a separate brand because of a different ‘get up’ or description; should be referred to the Tobacco Team.
Section TPD18000 of this book gives guidance for action when there is no recommended price and Section [
The duty on cigarettes has two components:
- an ad valorem rate (percentage of the retail selling price); and
- a specific rate per 1000 cigarettes.
For the purposes of calculating the ad valorem component of the duty, the retail selling price will usually be that recommended by the UK importer (as evidenced by the importer’s price list). Note: the use for duty purposes of a retail selling price, other than that recommended by the UK importer, must be authorised by the Tobacco team, Ralli Quays.
The...
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