Increases to Air Passenger Duty rates from 1 April 2024
Published 22 November 2023
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Who is likely to be affected
Airlines and other aircraft operators and their passengers.
General description of the measure
The rates of Air Passenger Duty for the tax year 2024 to 2025 will increase in line with the Retail Price Index (RPI) as forecast at Spring Budget 2023.
Policy objective
These changes ensure that Air Passenger Duty receipts are maintained in real terms (rounded to the nearest pound, based on forecast RPI) and that airlines continue to make a fair contribution to the public finances.
Background to the measure
The rates for the tax year 2024 to 2025 were announced at Spring Budget 2023 to give industry sufficient advance notice of changes in Air Passenger Duty rates.
Detailed proposal
Operative date
This measure will have effect in relation to the carriage of chargeable passengers on or after 1 April 2024.
Current law
Section 30 of Finance Act 1994 (FA 1994) sets out the rates of Air Passenger Duty .
Proposed revisions
Legislation will be introduced in Autumn Finance Bill 2023 to amend section 30 of FA 1994.
The Air Passenger Duty rates from 1 April 2024 will be as follows:
| Bands (distance in miles from London) | Reduced rate (lowest class of travel) | Standard rate (1) (other than the lowest class of travel) | Higher rate (2) |
|---|---|---|---|
| Domestic band | £7 | £14 | £78 |
| Band A (0 to 2,000 miles) | £13 | £26 | £78 |
| Band B (2,001 to 5,500 miles) | £88 | £194 | £581 |
| Band C (over 5,500 miles) | £92 | £202 | £607 |
(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 (£ million)
| 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 |
|---|---|---|---|---|---|
| — | Nil | Nil | Nil | Nil | Nil |
This measure is not expected to have an Exchequer impact.
Economic impact
This measure is not expected to have any significant economic impacts.
Impact on individuals, households and families
This measure will impact on some individuals who travel by air, who may see an increase in air fares. There is expected to be no impact on the majority of passengers who travel to short haul international destinations. Those individuals who travel to domestic, long-haul and ultra long-haul destinations may see an increase in price. The increase is in line with RPI, constituting a real terms freeze.
Customer experience is expected to stay broadly the same because this measure does not change how individuals interact with HMRC.
This measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
It is not anticipated that this measure will have any impacts on those in groups sharing protected characteristics. Air Passenger Duty is a tax on airlines and aircraft operators. The government’s understanding is that airlines and aircraft operators ordinarily pass the cost of Air Passenger Duty through to the consumer in ticket prices. This is a commercial decision for the airline and aircraft operator.
The government has limited evidence on the characteristics of people purchasing airline tickets. However, given the scale of the proposed rate changes, any impact is expected to be small.
Impact on business including civil society organisations
This measure is expected to have a negligible impact on approximately 600 airlines and aircraft operators. One-off costs include familiarisation with the changes and updating systems to include the new rates. It is not expected that there will be any continuing costs.
There is expected to be no impact on civil society organisations.
HMRC customer experience is expected to stay broadly the same because this measure does not change how businesses interact with HMRC.
Operational impact (£ million) (HMRC or other)
HMRC will not incur any costs making these changes.
Other impacts
We expect the measure to have a negligible impact on the environment. Other impacts have been considered and none has been identified.
Monitoring and evaluation
The measure will be monitored through information collected from receipts and Air Passenger Duty returns.
Further advice
If you have any questions about this change, please contact Ann Little on Telephone: 03000 586096 or email: ann.little@hmrc.gov.uk