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Aviation tax reform

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The outcome of the Treasury’s air passenger duty (APD) consultation has confirmed the following:

  • As announced in Autumn Budget 2021, the UK government will introduce a new reduced domestic band from 1 April 2023 to ‘support the viability of existing domestic air routes and potentially lead to increased frequency on existing routes and/or the establishment of new routes, and the social and economic benefits that this could provide’. Private business jets will be excluded from the reduction.
  • The number of APD international distance bands will be increased from April 2023, with bands set at 0–2,000 miles (short-haul flights to most destinations in Europe and North Africa), 2,000–5,500 miles (most of the rest of the world), and 5,500 miles+ (‘ultra long-haul’ – including Japan, Australia, South Africa and Argentina).
  • No plans to introduce a frequent flyer levy.
Issue: 1552
Categories: News
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