If you’re not really into politics or finance, the government's Spring Budget can be tricky to get your head around. But we hate to break it to you, it’s likely to have a pretty significant impact on all of our bank accounts.
Among all the stuff that chancellor Jeremy Hunt announced on Wednesday was a change to air passenger duty, which will impact how much we pay for getaways in the future. What does that mean, exactly? Let us break it down for you.
What exactly is Air Passenger Duty?
If you’re over 16 and have flown on a plane, you’ll have paid air passenger duty (APD). It’s the tax that you have to pay when you travel from most airports in this country. It’s actually unique to the UK.
How is Air Passenger Duty calculated?
It’s all figured out based on the distance you’re flying and which class you’re flying with. There are four separate categories:
- UK domestic flights
- Band A: Destinations abroad whose capital city is 2,000 miles or less from London. This covers all of Europe and parts of North Africa
- Band B: Destinations whose capital city is 2,001-5,500 miles from London
- Band C: Destinations whose capital city is over 5,500 miles from London
Within those categories, you either pay ‘reduced rate’, which is economy, ‘standard rate’, which is premium economy, business or first class, or ‘higher rate’ which basically just applies to private jets.
How much is Air Passenger Duty now?
Duty on domestic flights is going to go up from £6.50 to £7 for reduced rate, £13 to £14 for standard and remain at £78 for higher. The increases on international flights are:
- Band A: £13, £26 or £78
- Band B: £88, £194 or £581
- Band C: £92, £202 or £607
An even bigger increase has been proposed for the tax year 2025/26 when short-haul flights will rise by £2 per seat and duties on long-haul flights up to 5,500 miles will go up by 11 percent.
When is the new APD coming into effect?
The first raised rates are set to start from April 1 2024. We’ll see the bigger increases come into effect from the same time next year.
How does the increase impact travellers?
The airline is the one that actually pays the duty to the tax man. But, of course, the cost is reflected in the price we pay for plane tickets. The more luxury you want while you fly, the more your fares will rise.
Can I claim back Air Passenger Duty?
Yes, but only if you miss your flight. You can claim it back by applying for a refund through the airline.
Is anyone exempt from paying?
You can swerve APD if you are:
- Under 16 and travelling in basic economy
- Under two years old travelling in business class
- A pilot or a member of the cabin crew on duty
If you don’t fall into any of those categories, you can avoid the tax if you fly from a UK airport not subject to APD. Those include long-haul flights from Belfast and airports in the Scottish Highlands and Islands Region.
You’re also off the hook if you fly into the UK and get a connecting flight out within 24 hours, as long as they’re on the same ticket.
More travel taxes
Whether it’s to boost the economy or to scare tourists away, there’s been several taxes in recent years that have made holidaying that bit more pricey. Time Out has a comprehensive list of all the places you’ll have to pay extra to visit this year. A number of places in the UK, including Edinburgh, Wales and Norfolk, have been looking into a tourist tax, too.
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