Air Passenger Duty set to rise on 1 November 2010

The cost of Air Passenger Duty (APD) is set to rise again on 1 November 2010.

This extremely unpopular tax on air travel was introduced in 1994 and currently generates in the region of £2 billion for the Government.

Two years’ ago, the tax had two rates: Reduced Rates (for economy seats) and Standard Rates (premium seats including business class) and was levied according to destination, European or the rest of the world. The reduced rate was £10 for European destinations and £40 for all other destinations, Standard rate was £20 and £80.

In November 2009, four geographical bands were introduced based on the distance from London with rates starting at £11 for flights to Europe – Premium seats are charged at double the reduced rates.

Now, these rates are set to increase again on 1 November – the new fees are set out below:

  • Band A – flights to Europe £12
  • Band B – flights of up to 4,000 miles £60
  • Band C – flights to the Caribbean £75
  • Band D – flights to Australia and New Zealand £85

For Premium seats the charges are double at:

  • Band A – flights to Europe £24
  • Band B – flights of up to 4,000 miles £120
  • Band C – flights to the Caribbean £150
  • Band D – flights to Australia and New Zealand £170