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The UK's maximum 800 cigarette rule is against European Union law. The rule still is, you can bring back as much as you like as long as you can prove more than 800 is for personal use. This is stated clearly on the custom and excise web page. The onus will be you to prove it upon entry to the UK.
Remember that prices are NOT the same everywhere, including the airport, although most shops will charge the fixed 'government' price so it really isn't worth shopping around.
In line with revised UK customs guidelines as to what constitutes 'personal use' the airport shop did only sell you a maximum of 800 cigarettes or 1Kg of tobacco. However the large notice to that effect is no longer posted.
If you wish to take back more than that, buy from shops in town, like Jimmy´s Tobacco Albufeira.
If you are using a credit or debit card to buy tobacco/cigarettes Soares wine shops around the resort and also the small Garrafeira situated just outside Ouratlantico Apartments do not charge any commission fees for using them.
It is being reported that some shops will no longer accept credit cards for large tobacco and cigarette purchases. Do check before buying.
Those travelling to other destinations, especially outside the EU, should check what tax-free imports their local laws permit.
Golden Virginia 10 x 50g is now €127 (September 2016)
Amber Leaf 30g pack is €6.40. No longer sold in 40g pack or 35g.
Mayfair, Richmond €45.00
JPS Black €42
Silk Cut Purple €48.00
B&H Gold €48.00
B&H Silver €46.00
Superkings €47,00 £38
Marlboro Red €47.00
Embassy No 1 €48.00