Air Passenger Duty

how much is air tax

Air Passenger Duty (APD) was introduced in 1994 with a £5 rate for the UK/EU and £10 elsewhere.

Since then, it’s seen several increases and a doubling for passengers travelling other than in economy class (Reduced Rate = economy class; Standard Rate = premium class).

Four geographical bands were introduced in 2009 based on the distance from London to the capital city of the country concerned (with the exception of the Russian Federation which is split east and west of the Urals).

The Government devolved APD on direct long-haul flights from Northern Ireland to the NI Executive in 2013. On 22 January 2015, it announced the devolution of APD to Scotland following the Smith Commission recommendations in the wake of the no vote on Scottish independence. This devolution will be part of the Scotland Bill which will begin its Parliamentary stages after the General Election in May.

Once the Bill is given assent, the Scottish Parliament will lay down its own legislation to enact a reduction in APD from a date to be specified.

On 27 February the Government announced that, in the next Parliament, they will consider devolving APD in Wales.

APD rates increased in line with inflation from 1 April 2015 and the RPI uprating will continue in 2016.

It was announced in the March 2014 Budget that, from April 2015, bands C and D will be abolished and those destinations will be charged at band B rates.

In the December 2014 Autumn Statement, it was announced that APD on economy flights for children under 12 will be abolished from 1 May 2015, and for under 16s from 1 March 2016.

The future rates are shown alongside the current ones:

Bands (approximate distance in miles for the UK)

Source: abta.com

Category: Taxes

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