Air Passenger Duty
The Air Passenger Duty (APD) rates shown below are from the Pre-Budget Report 2008, and should not be used until 1 November 2009.
Changes will have effect in relation to any carriage of a passenger which begins on or after 1 November 2009, irrespective of when the ticket for travel was booked or purchased.
APD is a tax on the airlines and, although they are not legally obliged to, many choose to pass on this charge to the passenger in the form of a business charge. For convenience this is usually done at the time of the ticket sale, although the tax itself is not due until the aircraft takes off.
Whether or not the airline chooses to pass on this latest rate increase is consequently a business decision and outside the remit of HM Revenue & Customs (HMRC).
There are currently four rates of APD as follows:
| Passenger type | In the lowest class of travel (Reduced rate) |
In other than the lowest class of travel* (Standard rate) |
| Passengers flying to destinations in the European Economic Area (EEA), the European Common Aviation Area, countries applying to join the EU, and Switzerland. | £10 | £20 |
| Passengers flying to other destinations | £40 | £80 |
*(however if only one class of travel is available and that class provides for seating in excess of 40″ then the standard (rather than the reduced) rate of APD applies).
The new bands and the rates of duty for 2009-10 and 2010-11 are as follows:
| Band, and approximate distance in miles from | In the lowest class of travel (Reduced rate) |
In other than the lowest class of travel* (Standard rate) |
||
| 2009-10 | 2010-11 | 2009-10 | 2010-11 | |
| Band A (0-2000) | £11 | £12 | £22 | £24 |
| Band B (2001-4000) | £45 | £60 | £90 | £120 |
| Band C (4001-6000) | £50 | £75 | £100 | £150 |
| Band D (over 6000) | £55 | £85 | £110 | £170 |
*(however if only one class of travel is available and that class provides for seating in excess of 40″ then the standard (rather than the reduced) rate of APD applies).
Distances are based on the distance between London and the capital city of the destination country/territory.
The following specifies which band countries, territories and regions fall into for each of the new APD Bands:
- Band A: 0-2,000 miles from London
- Band B: 2,001-4,000 miles from London
- Band C: 4,001-6,000 miles from London
- Band D: over 6,000 miles from London
If you have any questions regarding Air Passenger Duty and how Davenports can help, please contact us.
