Air Passenger Duty

The measure

Following a consultation process on the reform of aviation taxes, the government is to introduce: 

• A new domestic band for Air Passenger Duty (APD); and
• A new ultra-long-haul band. 

The intention of the new domestic band is to support connectivity within the UK. For the tax year 2023/24, the rates for domestic flights will be £6.50 for the lowest class of travel and £13 for other classes. This is a reduction of 50% on the international rate. The rate for those travelling on private jets will be £78 – there is no reduction in this rate. 

The new ultra-long-haul band will apply to destination countries with capital cities that are more than 5,500 miles from London. The introduction of the new band is intended to align APD with the government’s environmental objectives. The rate for the lowest class of travel for the new ultra-long-haul band will be set at £91, £4 greater than the current long-haul band, £200 for those travelling in all other classes, and £601 for those travelling on private jets. 

Rates for the short- and long-haul bands for the 2023/24 year will increase in line with RPI, meaning the rates for the lowest class of travel will remain at £13 for the short-haul band and will increase by £3 for the long-haul band.

Who will be affected?

The travel and aviation industry, and its customers.

When will the measure come into effect?

From 1 April 2023, the new rates will be as follows:

Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies.

The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.