Introduction
Air Passenger Duty (APD) is a tax on flights departing from UK airports. It is designed to raise revenue for the UK government while also encouraging people to consider the environmental impact of their travel choices. In this article, we will discuss Air Passenger Duty, its importance, and how it is calculated.
Understanding Air Passenger Duty
- Air Passenger Duty is a tax on passengers travelling on flights departing from UK airports.
- The tax is levied on airlines, who then pass the cost onto passengers as part of their ticket price.
- The rate of APD varies depending on the distance travelled and the class of travel.
Importance of Air Passenger Duty
- Air Passenger Duty is an important source of revenue for the UK government, raising over £3 billion in 2019-20.
- The tax helps to offset the environmental impact of air travel by discouraging unnecessary flights and encouraging more sustainable modes of transport.
- The revenue raised from APD is used to fund public services such as healthcare, education, and social welfare.
How Air Passenger Duty is Calculated
- The rate of APD varies depending on the distance travelled and the class of travel.
- There are currently four bands of APD, based on the distance between London and the capital city of the destination country.
- The rates for 2022-23 are as follows:
- Band A (0-2,000 miles): £13 for economy class, £26 for all other classes.
- Band B (2,001-4,000 miles): £82 for economy class, £180 for all other classes.
- Band C (4,001-6,000 miles): £94 for economy class, £208 for all other classes.
- Band D (over 6,000 miles): £110 for economy class, £220 for all other classes.
- Some passengers may be exempt from paying APD, such as children under 16 and people travelling for medical reasons.
Examples of Air Passenger Duty
- Example 1: A person buys an economy class ticket for a flight from London to Paris (a distance of approximately 215 miles). The airline adds £13 of APD to the ticket price.
- Example 2: A person buys a business class ticket for a flight from London to New York (a distance of approximately 3,460 miles). The airline adds £180 of APD to the ticket price.
Conclusion
Air Passenger Duty is a tax on flights departing from UK airports, designed to raise revenue for the UK government and encourage more sustainable modes of transport. The rate of APD varies depending on the distance travelled and the class of travel, with different rates for economy, premium economy, business, and first-class travel. By understanding how APD is calculated, travellers can make more informed choices about their travel plans and budget accordingly.