Finance Bill Tracking Service 2010 | Budget 2010

BN59 AIR PASSENGER DUTY: DUTY RATES

Who is likely to be affected?

1. Airlines, travel agents and air passengers, including those who have already booked tickets for travel on or after 1 November 2010.

General description of the measure

2. As announced at the 2008 Pre-Budget Report, legislation will be introduced in Finance Bill 2010 to increase the rates of air passenger duty (APD) from 1 November 2010.

Operative date

3. The changes will have effect in relation to any carriage of a passenger which begins on or after 1 November 2010, irrespective of when the ticket for travel was booked or purchased.

Current law and proposed revisions

4. There are currently eight rates of APD. These, and the new rates to be applied to flights departing on or after 1 November 2010, are contained in the following table:

Destination band, and In the lowest class of In other than the
approximate distance in travel lowest class of travel*
miles from London (reduced rate) (standard rate)
Current From 1 Current From 1 Nov
Nov 2010 2010
Band A (0 - 2000) £11 £12 £22 £24
Band B (2001 - 4000) £45 £60 £90 £120
Band C (4001 - 6000) £50 £75 £100 £150
Band D (over 6000) £55 £85 £110 £170

* (However, if only one class of travel is available and that class provides for seating with a seat pitch in excess of 40" then the standard (rather than the reduced) rate of APD applies.)

5. A list of countries by band is contained in Appendix 1 of HM Revenue & Customs (HMRC) Notice 550, Air Passenger Duty, which is available on the HMRC website.

6. Section 30 of the Finance Act 1994 will be amended to implement the rate changes.

Further advice

7. If you have any questions about this change, please contact the Excise and Customs Helpline on 0845 010 9000. Information about Budget measures is available on the HMRC website at www.hmrc.gov.uk