The places where smoking will be banned include offices, cinemas, factories, pubs and bars. However, the ban excludes outdoors or in private homes.
Beginning July 1, it will also be mandatory for all pubs and restaurants in England to display prominent "no smoking" signs around their premises.
BBC reports that Prime Minister Tony Blair has said the ban is part of a wider drive to improve public health after government statistics in 2004 suggested that around one in four adult Britons smokes regularly.
According to Health Secretary Patricia Hewitt, "Thousands of people's lives will be saved and the health of thousands more protected" by the ban.
"Smokefree legislation will protect everyone from the harm of secondhand smoke ... and relaxing and will provide a more supportive environment for smokers who wish to give up," she added.
However, many pub owners and pro-smoker groups have all expressed their remorse about the law, as they fear it could have a negative impact on business.
Earlier in March this year, Scotland became the first British nation to ban smoking in public places. It also imposed a fine of $350 if the ban was violated by businesses. Individuals who do not comply with the law can be fined $87.
However, the British government has exempted some workplaces from the ban, including adult care homes, hospices, offshore installations and submarines.
Additionally, the government also spared police detention or interview rooms and designated hotel bedrooms from the smoking ban.
Similar rules will apply in England and Wales.
The British government believes that about 600,000 people will give up smoking as a result of the law change.
