[Anonymous]

[Swissdiver]

UK Confirms New Air Passenger Duty Structure (20th February 2015)

The UK tax authority, HM Revenue and Customs (HMRC), has released an information brief on plans to substantially reform the structure of the UK’s air passenger duty (APD) from April 1, 2015.

As announced in the 2014 Budget, the number of APD destination bands will be reduced to two by merging the three bands for medium and long distance flights, bands B, C, and D. The higher rates that apply to aircraft with an authorized take-off weight of 20 tonnes or more and with fewer than 19 seats – aimed at business jet travel – will be set at six times the reduced rates.

From April 1, 2015, band A (for flights of up to 2,000 miles) will feature a GBP13 (USD20) charge for economy class; GBP26 for all classes other than economy class; and a higher rate (for business jets) of GBP78.

The second band, Band B, which applies to flights of over 2,000 miles will be levied at a rate of GB71 for economy class and GBP142 for other classes. The higher rate will be GBP426.

According to Government estimates, the changes will reduce the APD tax burden by over GBP200m each year, beginning with a fall of GBP215m in the fiscal year 2015-16.

The measure will reduce the tax paid on flights to many destinations. A family of four visiting relatives in the Caribbean or India flying in economy class will pay GBP56 less APD. A person flying business class to China or Brazil will pay GBP28 less.

Source: Ocra newsletter

[ImissConcorde]

Dublin seems to be winning!

http://www.irishtimes.com/business/transport-and-tourism/record-number-from-north-opt-to-fly-from-dublin-1.2212993

[AMcWhirter]

It appears the growth seen at DUB is partly because of APD but also because there were a number of new long-haul routes.

BFS only has one direct long-haul route which would attract the special VAT rate.

Norhern Ireland is keen to attract one of the Gulfies to BFS. According to the BBC (NI) , Emirates is poised to appoint a sales rep for N Ireland but the job will be to promote flights ex-DUB rather than ex-BFS.

Here’s the statement from DUB regarding passenger growth.

http://www.dublinairport.com/gns/at-the-airport/latest-news/15-05-14/Dublin_Airport_Grows_NI_Business_By_52_in_2014.aspx

[icenspice]

It’s ironic that the most popular destination for the Northern Irish travelling from Dublin is New York.

[PeterCoultas]

I won’t be taking flights over 2000 miles direct from the UK in future…maybe the airlines should think about changes to ticketing with protected connections that involve separate bookings – certainly BA should make bigger efforts with connections via Dublin & Madrid

Free flights last year saved over £ 400 by booking paid eco flights to GVA compared with direct from the UK

[BigDog.]

Consultation on plans to halve air passenger duty (APD) on flights from Scottish airports is to be launched.

http://www.bbc.co.uk/news/uk-scotland-scotland-politics-35801274

…SNP ministers have said they will cut the duty by 50% between April 2018 and 2021, if they win the Holyrood election on 5 May…

If this comes to pass, I would expect a fair number of “northerners” to route through Scotland as opposed to LHR.

Edit current APD rates are £13 short haul, £73 long haul. In northern Ireland long haul is zero.
An English airport group has suggested a zero rate for uncongested UK airports.

[canucklad]

Another reason why the SNP are soaring in the poll’s.
And Labour, who want to maintain the tax at current levels, because it doesn’t benefit the poor, who apparently can’t afford to fly anyway, thus a reduction only serves to make the rich ,richer….bonkers!!

Overall good news for Scottish business and even better news for those businesses in the tourist trade.

[BA744fan]

How do these new rates compare with current ones? Who wins/loses?

[skywards]

I now start my business class flights from AMS. Living in NCL it’s just as quick if not quicker flying to AMS than it is to LHR especially when using a non BA carrier from another terminal. I can basically save a small fortune as well with The Netherlands not having this ruthless APD.

[ViajeroUK]

skywards +1

Except for me from BHX area LHR can only be reached by road or rail, both options have their challenges so AMS is so much easier and quicker.

[transtraxman]

APD is a bad tax which the Government has been able to get away with for far too long. It is a poll tax and we know from the past how people view poll taxes.

The polluters are the aircraft not the passengers. This poll tax should be changed to an “aircraft movement tax” applied to all taking-off aircraft empty or full, passenger and cargo. Its quantity would depend on several factors such as the size of the aircraft, the number of engines, the fumes emitted and the noise footprint. Therefore, it should remain in the hands of the UK Government so no discriminatory rates can be applied by competing regions to distort the market.

Michael Heseltine, or somebody like him would be able to use common sense to find a fairly simple formula applied to all – and easier, less bureaucratic (thus cheaper) to collect while maintaining the same income for the Treasury..

[canucklad]

You’re spot on transtraxman…At its inception it was hailed as an “environmental tax”.
Green zealots hailed it as way to discourage people from flying.

But what about taxing strawberries, fresh fish, mobile phones, flowers or whatever else arrives on our shore, relatively cheaply in the holds or even worse in all cargo jets that ironically are older and as a consequence worse polluters!
Bet you’d have those same green zealots mumping about penalizing those farmers in the 3rd world who depend on trading with us!!

The reality is, successive governments love this easy to collect tax, regardless of your individual wealth.

[LuganoPirate]

Yes, and that incudes fresh flowers flown in from Zimbabwe and Kenya to satisfy demand for roses in winter!

[LuganoPirate]

Yes, and that incudes fresh flowers flown in from Zimbabwe and Kenya to satisfy demand for roses in winter!

[Author]

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