2014 APD changes

Posted by Mark Tanzer on 20 March 2014 | 0 Comments

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19 March 2014

ABTA – The Travel Association responds to today's Budget announcement regarding Air Passenger Duty reform.

Mark Tanzer, ABTA Chief Executive said: “ABTA strongly welcomes the Chancellor’s announced cut to Air Passenger Duty and changes to the banding system as a first step in the reform of this damaging tax. Moving all long-haul flights into band B of APD at current levels will save passengers over £200m annually, and should boost travel and tourism as well as promote greater UK connectivity.

“ABTA has been at the forefront of campaigning to reform and reduce APD, and today’s announcement is a clear recognition from the Government of the negative impact this tax is having.

“Whilst today’s Budget is very much a step in the right direction, ABTA will continue to call for a reduction in overall rates of APD which, at their current band A and B levels, will continue to inhibit the contribution of the travel and tourism sector to growth and employment. ABTA will also review any potential anomalies created by the new banding system, and work with Government to mitigate their impact.”

This will take effect from April 2015. For example, at current levels a family of four will save £104 on flights to Sydney, Australia and £56 on flights to Cancun, Mexico.

The bands are currently set out as follows:

Reduced rateStandard rate
  Rate from 01/04/2014 Rate from 01/04/2015 Rate from 01/04/2014 Rate from 01/04/2015
Band A (0-2000 miles) £13 £13 £26 £26
Band B (2001-4000*) £69 £71 £138 £142
Band C (4001-6000) £85 ABOLISHED £170 ABOLISHED
Band D (over 6000) £97 ABOLISHED £194 ABOLISHED
*from April 2015 this will include all long-haul flights currently in band C or D