Air passenger duty: rates from 1 April 2019 to 31 March 2020
Published 22 November 2017
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This publication is available at https://www.gov.uk/government/publications/air-passenger-duty-rates-from-1-april-2019-to-31-march-2020/air-passenger-duty-rates-from-1-april-2019-to-31-march-2020
Who is likely to be affected
Airlines and other aircraft operators, and their passengers.
General description of the measure
The short-haul rates of air passenger duty (APD) for the tax year 2019 to 2020 will remain at their present levels.
The long-haul reduced rate for the tax year 2019 to 2020 will be frozen at the 2018 to 2019 level, the standard rate will increase by £16 and the higher rate will increase by £47.
Policy objective
This measure freezes short-haul and reduced long-haul APD rates for the tax year 2019 to 2020 and therefore keeps costs down for the vast majority of passengers. Overall revenues from APD continue to rise in line with the retail prices index (RPI) helping to contribute towards general taxation.
Background to the measure
The rates for the tax year 2019 to 2020 are being announced at Autumn Budget 2017 to give the industry sufficient advance notice of changes in APD rates.
Detailed proposal
Operative date
The rates for the tax year 2019 to 2020 will have effect in relation to the carriage of chargeable passengers on or after 1 April 2019.
Current law
Section 30 of Finance Act (FA) 1994 sets out the rates of APD.
Proposed revisions
Legislation will be introduced in Finance Bill 2017-18 to amend section 30 of Finance Act (FA) 1994. The rates will be as follows:
From 1 April 2019
| Bands (distance in miles from London) | Reduced rate (lowest class of travel) | Standard rate (other than the lowest class of travel)(1) | Higher rate (2) |
| Band A (0 to 2000 miles) | £13 | £26 | £78 |
| Band B (over 2000 miles) | £78 | £172 | £515 |
(1) If any class of travel provides a seat pitch in excess of 1.016 metres (40 inches) the standard rate is the minimum rate that applies.
(2) The higher rate applies to flights aboard aircraft of 20 tonnes and above with fewer than 19 seats.
Summary of impacts
Exchequer impact (£m)
| 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 |
|---|---|---|---|---|---|
| - | - | +25 | +25 | +25 | +30 |
These figures are set out in Table 2.1 of Autumn Budget 2017 and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside Autumn Budget 2017.
Economic impact
This measure is not expected to have any significant macroeconomic impacts.
Behavioural responses were included to take into account the change in the number of passengers in response to changing airfares.
Impact on individuals, households and families
This measure will impact on some individuals, households and families who travel by air. Freezing the short-haul and reduced long-haul APD rates for the tax year 2019 to 2020 will keep costs down for the vast majority of passengers. However, increasing the standard and higher long haul rates will mean some passengers will pay more for their flights.
The measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
This measure will impact on those who travel more by air. Some protected characteristics are likely to be over represented in the class of people who travel by this means.
Impact on business including civil society organisations
This measure is expected to have a negligible impact on approximately 800 airlines and aircraft operators. One-off costs include familiarisation with the new rates and updating systems to include the new rates. It is not expected that there will be any on-going costs. There is no impact on civil society organisations.
Operational impact (£m) (HM Revenue and Customs (HMRC) or other))
Costs to HMRC of implementing this change are expected to be negligible.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
HMRC will assess the impact of the measure by monitoring receipts and information collected on APD returns.
Further advice
If you have any questions about this change, please contact Ann Little on Telephone: 03000 586096 or email: ann.little@hmrc.gsi.gov.uk.