Measure

Air Passenger Duty (APD)

The measure

HMRC have announced that APD rates for 2027-28 and subsequent years will increase in line with the Retail Prices Index (RPI) , with rates to be rounded to the nearest penny.  

HMRC have also published responses to their previous consultation on extending the scope of APD, and have confirmed  that the higher rate of APD will be extended to private jets weighing more than 5.7 tonnes. 

The rates for 2027/28 will be as follows: 

Band (distance in miles from London) 

Reduced Rate  

Standard Rate  

Higher Rate 

Domestic 

£8.26 

£16.52 

£146.63 

Band A (0 to 2,000 miles) 

£15.49 

£33.04 

£146.63 

Band B (2,001 to 5,500 miles) 

£105.33 

£251.95 

£1,132.76 

Band C (over 5,500 miles) 

£109.46 

£261.25 

£1,178.20 

 

Who will be affected?

The travel and aviation industry, and its customers. 

 

When will the measure come into effect?

The rate changes and extension of the higher rate to private jets will take effect on 1 April 2027. 

Our view

Both the increases in line with RPI and the extension of the scope of the higher rate to private jets are as expected.  Both are in line with the government’s stated environmental objectives, with higher APD charges borne by passengers who produce, the most emissions.