What
is the Air Passenger Duty (APD)?
APD is a government excise duty, and is payable to the
Treasury by UK airlines. However, this tax is only charged
once a flight has taken off, and therefore, if passengers
do not use their flight, they are entitled to claim the
APD back. The cost of APD is set to rise by £1 to
£11 on short-haul economy flights, and to £45
on long-haul economy flights to the US, £50 to the
Caribbean and £55 to Singapore. There will also
be increases for other classes of ticket.
APD is expected to raise
£1.8 billion in 2009-10, according to the 2009 Budget
statement. It is forecast to raise £2.2 billion
in 2010-11, rising to £3.3 billion in 2013-14. More
information here. The £10 billion notional benefit
figure is also likely to rise, as a result of increased
fuel duty and rising economic activity.
The
UK Government will introduce the Air Passenger Duties
in two phases in November 2009 and November 2010.
There will be four bands, based on distance of capital
cities from London. Passengers in premium seats
(premium economy, business and first) will pay the
higher sum. |
|
Band A (0 - 2000 miles from London)
Includes: Europe, Algeria, Greenland, Libya, Morocco,
Tunisia
| |
Economy cabins |
Premium cabins |
| Currently |
£10 |
£20 |
| November 2009 |
£11 |
£22 |
| November 2010 |
£12 |
£24 |
Band B (2001-4000 miles)
Includes: Bermuda, Canada, Egypt, Gambia, Jordan, Oman,
Russia (east of Urals), Syria, UAE, US
| |
Economy cabins |
Premium cabins |
| Currently |
£40 |
£80 |
| November 2009 |
£45 |
£90 |
| November 2010 |
£60 |
£120 |
Band C (4001-6000 miles)
Includes: Botswana, Brazil, Caribbean, China, India, Japan,
Kenya, Maldives, Mauritius, Mexico, Seychelles, South
Africa, Sri Lanka, Thailand
| |
Economy cabins |
Premium cabins |
| Currently |
£40 |
£80 |
| November 2009 |
£50 |
£100 |
| November 2010 |
£75 |
£150 |
Band D (more than 6000 miles)
Includes: Argentina, Australia, Chile, Fiji, Indonesia,
Malaysia, Peru, Singapore
| |
Economy cabins |
Premium cabins |
| Currently |
£40 |
£80 |
| November 2009 |
£55 |
£110 |
| November 2010 |
£85 |
£170 |
The figures below show that 25% more tax
will be paid travelling to Bridgetown, than will be paid
flying to Honolulu, even though Bridgetown is 3,000 miles
closer to London.
| APD
charges |
Bridgetown
London (Bridgetown = 4,210 miles = 25% higher charge) |
Honolulu
London (Honolulu = 7,230 miles = 72%
further) |
| |
Economy |
Premium |
Economy |
Premium |
| Currently |
£40 |
£80 |
£40 |
£80 |
| November 2009 |
£50 |
£100 |
£45 |
£90 |
| November 2010 |
£75 |
£150 |
£60 |
£120 |
