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HMRC internal manual

Air Passenger Duty

HM Revenue & Customs
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Unjust enrichment - arrangements for reimbursing consumers: The reimbursement 'scheme'

Schedule 5, Part 1 of the Finance Act 1997 gave us powers to introduce a reimbursement scheme (“the Scheme”). The reimbursement provisions have been incorporated in the Aircraft Operators (Accounts and Records) Regulations 1994 as regulations 9 to 16 by the Aircraft Operators (Accounts and Records) (Amendment) Regulations 1998 which became law on 11 February 1998.

The scheme is not compulsory as it gives those registered aircraft operators who accept they would be unjustly enriched by receiving a tax refund a choice. They can either:

  • do nothing; or
  • claim the refund. But if they do they must abide by the terms of the scheme and reimburse consumers in a set manner.

Refunds must be made either in cash or by cheque in accordance with Regulation 11(c). Credit notes were specifically excluded because consumers may choose not to fly with the refunding carrier again.