Air passenger duty (APD) is a duty chargeable per passenger flying from UK airports to domestic and international destinations. APD follows a band structure, where duty rates vary by destination and by class of travel. Receipts are payable to HMRC by the operator of the aircraft 29 days (usually one calendar month) after the end of the accounting period, so, for example, May receipts will relate to flights taken in April. The Government updates the rates annually. They come into effect on 1 April each year.
APD rates from 1 April 2018
In our latest forecast, we expect APD to raise £3.5 billion in 2018-19. That would represent 0.5 per cent of all receipts and is equivalent to just over £120 per household and 0.2 per cent of national income. Despite the higher rates charged for travel in classes above the lowest one available, the majority of receipts are generated from those travelling in the lowest class. This reflects the fact that almost 95 per cent of the more than 110 million passenger flights taken each year involve travel in a class that is liable to the reduced rate.
The Scotland Act 2016 includes provisions for the devolution of APD to Scotland. The timing of devolution has yet to be agreed between the Treasury and the Scottish Government. For more information on Scottish APD see our Devolved tax and spending forecasts publication.