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Big hike in UK Air Passenger Duty (Tax)

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Old Nov 29, 2011, 10:28 am
  #1  
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Big hike in UK Air Passenger Duty (Tax)

To quote Mr Peston from the BBC

"Big hike in aircraft passenger duty buried in small print. A leading airline (ahem) very grumpy indeed. Disguised increase in holiday costs"

I'm assuming that airline is BA

Anyone have any further details?
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Old Nov 29, 2011, 10:30 am
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Few more details:

http://www.telegraph.co.uk/travel/tr...confirmed.html

Family of 4:

£68 increase for a premium fare to Oz. (£748)

Last edited by FLT001; Nov 30, 2011 at 9:46 am
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Old Nov 29, 2011, 10:33 am
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http://www.travelweekly.co.uk/Articl...se-in-apd.html
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Old Nov 29, 2011, 10:36 am
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Disgusting in my opinion. DUB/AMS here I come for redemptions ^
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Old Nov 29, 2011, 10:39 am
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Surely we are coming to a point where it might make more sense to introduce VAT on air travel and discard the APD. Certainly a more progressive option...
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Old Nov 29, 2011, 10:41 am
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Originally Posted by AJLondon
Surely we are coming to a point where it might make more sense to introduce VAT on air travel and discard the APD. Certainly a more progressive option...
Problem there is that people like me - flying SYD-LHR-SYD - won't pay VAT, since the sale is in Australia, so HM Government will still miss out.

Best do what I do, get a cheapie (RyanScair, SleazyJet, EuroStar) across to the continent, and head back home from there, avoid the APD altogether.

Dave
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Old Nov 29, 2011, 10:47 am
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Originally Posted by FLT001
£68 increase for a premium fare to Oz. (£748)
For a family of 4 - so £17 per person.
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Old Nov 29, 2011, 10:48 am
  #8  
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From the Budget statement:

1.137 The Government will proceed with the extension of Air Passenger Duty (APD)
to flights taken aboard business jets, effective from 1 April 2013. Details will be set out
in the Government’s response to the APD consultation on 6 December 2011/
2.31 Air Passenger Duty – Air Passenger Duty (APD) rates will increase from 1 April 2012,
as set out at Budget 2011. The Government will also proceed with the extension of APD to
flights taken aboard business jets, effective from 1 April 2013. Details will be set out in the
Government’s response to the APD consultation on 6 December 2011. As announced on 27
September 2011, APD will be cut for passengers travelling on direct long-haul routes departing
from airports in Northern Ireland, effective from 1 November 2011. The direct long-haul rates
will fall to the prevailing band A rate of APD. To provide a lasting solution, the Government has
launched a parallel process to devolve aspects of APD to the Northern Ireland Assembly. (4, 11)
Their predicted receipts from APD will rise from £2.2 billion this year to £3.8 billion by 2016-17

http://cdn.hm-treasury.gov.uk/autumn_statement.pdf
More to come next week then - trickling out bad news?
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Old Nov 29, 2011, 11:11 am
  #9  
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I'm sure I read somewhere that the whole APD saga started with The Treasury determined to acquire £2bn via this route. No other rationale ... just give us more money, without any underlying consideration of what could be rudely called tax-avoidance? Like flying from other hubs?

As a [hopefully relevant] aside ... I've just had a letter from HMRC. It is now clear that under the Dual Taxation Agreement, I'm not allowed to have my UK Pensions taxed in UK any more - they now have to be taxed in Jersey. So thanks, Mr Osborne, you have found a new way of losing income to The Exchequer ... and Jersey reaps the benefits instead. No loss to me, it's a better tax environment anyway

And there are highly-paid people achieving that sort of activity? I really do despair. As for their "predicted receipts", I seriously suspect there are going to be some very disappointed officials at the Treasury, as people simply stop flying and airlines start retrenching [vide BA pulling out of the MBJ route].
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Old Nov 29, 2011, 11:13 am
  #10  
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Originally Posted by G-BOAC
For a family of 4 - so £17 per person.
That's more acceptable...peanuts really.
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Old Nov 29, 2011, 11:16 am
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Originally Posted by HIDDY
That's more acceptable...peanuts really.
Depends, doesn't it.
I've just spent £50+ on wine today. Not an issue.
For others, £17 pp could make the difference between affording it or not.

Unless they're on UK benefits, of course. Then, for some, it might be easy
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Old Nov 29, 2011, 11:21 am
  #12  
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Originally Posted by T8191
Depends, doesn't it.
I've just spent £50+ on wine today. Not an issue.
For others, £17 pp could make the difference between affording it or not.

Unless they're on UK benefits, of course. Then, for some, it might be easy
One less Chinese carry out every other month and they'll soon have the money to cover it.
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Old Nov 29, 2011, 11:22 am
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Originally Posted by rossmacd
Disgusting in my opinion. DUB/AMS here I come for redemptions ^
Indeed! At last, something for us Euro-Reals!!!
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Old Nov 29, 2011, 11:27 am
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The Mandarins were at lunch on 17 November?

Palmer
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Old Nov 29, 2011, 11:36 am
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just means I won't be stopping in London on my BA flights... A real shame, and loss of money to the British Tourism industry...
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