Air passenger duty cut for domestic flights
In the Budget, the Chancellor announced plans to cut the air passenger duty rate on the return leg of flights but signalled a new higher rate for ultra-long haul trips
From 1 April 2023 to support connectivity across the UK the government will be introducing a new domestic band for air passenger duty (APD), covering flights within the UK.
In addition, the government will introduce a new ultra-long-haul band, covering destinations with capitals located more than 5,500 miles from London to align APD more closely with the government’s environmental objectives.
For the tax year 2023-24, the economy rate for the domestic band will be set at £6.50. The rates for the short- and long-haul bands will increase in line with RPI, meaning that the short-haul economy rate will remain frozen at £13 and the long-haul economy rate will increase by £3.
The economy rate for the ultra-long-haul band will be set at £91, £4 greater than the long-haul band. This will cover destinations like Australia, Japan, Southern Africa, Mexico and parts of South America.
This applies across the UK except for the direct long-haul rates for Northern Ireland which are devolved.