Air Passenger Duty rates from 1 April 2022 to 31 March 2023
Published 3 March 2021
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Who is likely to be affected
Airlines and other aircraft operators, and their passengers.
General description of the measure
The long-haul rates of Air Passenger Duty (APD) for the tax year 2022 to 2023 will increase in line with the retail price index (RPI) as forecast at Budget 2021. Short haul rates will not rise.
Policy objective
This measure increases APD rates in line with RPI, constituting a real terms freeze. This ensures that APD receipts are maintained in real terms and that airlines make a fair contribution to the public finances.
The two distance band structure ensures that flights that travel further are subject to a higher tax rate.
Background to the measure
This measure was announced at Budget 2021.
The rates for the tax year 2022 to 2023 are being announced at Budget 2021 to give industry sufficient advance notice of changes in APD rates.
Detailed proposal
Operative date
The rates for the tax year 2022 to 2023 will have effect in relation to the carriage of chargeable passengers on or after 1 April 2022.
Current law
Section 30 of Finance Act 1994 (FA 1994) sets out the rates of APD.
Proposed revisions
Legislation will be introduced in Finance Bill 2021 to amend section 30 of FA 1994. The rates will be as follows:
From 1 April 2022
| 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) |
|---|---|---|---|
| Band A (0 – 2000 miles) |
£13 | £26 | £78 |
| Band B (over 2000 miles) |
£84 | £185 | £554 |
(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)
| 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 |
|---|---|---|---|---|---|
| - | - | 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. There is expected to be no impact on the majority of passengers who travel to short haul destinations. Those individuals who travel to 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 there will be impacts for those in groups sharing protected characteristics.
Impact on business including civil society organisations
This measure is expected to have a negligible impact on approximately 1500 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 continuing costs.
There is expected to be no impact on civil society organisations.
Customer experience is expected to stay broadly the same because this measure does not change how businesses interact with HMRC.
Operational impact (£m) (HMRC or other)
Costs to HMRC of implementing this change are expected to be negligible.
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 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.gov.uk.