• Shader Saidi

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.

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