Go Back  FlyerTalk Forums > Miles&Points > Airlines and Mileage Programs > British Airways | Executive Club
Reload this Page >

UK APD Changes announced in the Oct '21 budget

UK APD Changes announced in the Oct '21 budget

Old Oct 27, 21, 7:23 am
  #1  
Original Poster
 
Join Date: Jun 2008
Programs: Various memberships
Posts: 530
UK APD Changes announced in the Oct '21 budget

50% cut on domestic APD from 2023
New ultra long haul band (5500 miles+)

Just announced in the budget.

More details will no doubt follow.
TheEngineer is offline  
Old Oct 27, 21, 7:56 am
  #2  
 
Join Date: Nov 2017
Posts: 1,196
The domestic APD cut seems like a bizarre decision to me. I would have thought they would do as France and encourage more people on to trains for short trips, rather than flights.
RG1X is offline  
Old Oct 27, 21, 8:09 am
  #3  
 
Join Date: Jul 2014
Location: WAW ✈ LHR ✈ GLA
Programs: BA GGL/CCR, HH Diamond, IHG Spire Ambassador
Posts: 2,481
Originally Posted by RG1X
The domestic APD cut seems like a bizarre decision to me. I would have thought they would do as France and encourage more people on to trains for short trips, rather than flights.
At least in France you can land at CDG and take TGV from the airport... how would that work in London? Land at Heathrow, take HEx to Paddington, tube to Euston, walk overground, take train to Manchester... and then your train to Manchester is likely to cost you more than your flight into Heathrow (or any other London airport).
MaxFlyer, ffI, RoyalSwazi and 9 others like this.
megaloman is offline  
Old Oct 27, 21, 8:16 am
  #4  
 
Join Date: Jun 2016
Location: Cheshire
Programs: BAEC Gold
Posts: 30
Will be interesting to see if the 5500 is statute or nautical miles as that will determine South Africa's status.
oaplovestravel is offline  
Old Oct 27, 21, 8:19 am
  #5  
FlyerTalk Evangelist
 
Join Date: Oct 2001
Location: Falkirk, Scotland,VS Red, BA Gold, HH Diamond,UK Amex Plat
Programs: Master of the Privy Purse des Muccis
Posts: 17,541
Hi

be interesting to see what routes will have the higher rate ( depending on the definition of miles)

Potential affected routes could include for example
Tokyo and Japan
Hong Kong
Singapore
Los angeles?
South Africa?
Regards

Tbs

Whilst a positive impact for me on the domestic and it seems a bit odd to reduce it just now.

Last edited by The _Banking_Scot; Oct 27, 21 at 8:41 am
The _Banking_Scot is offline  
Old Oct 27, 21, 8:21 am
  #6  
 
Join Date: Mar 2009
Location: JAX
Programs: Ex-BA/AA/CP/LY staff, BA Executive Club Blue, IHG Diamond, Marriott Silver, Chick-fil-A Red
Posts: 3,540
If the band uses statute miles, the 5500+ mile ultra long haul band from LHR will be all the destinations in the shaded area per gcmap.com:




SAN squeaks in at 5474, but MEX does not at 5562, nor JNB at 5628. BA's Brazilian destinations are also out.
JAXBA is offline  
Old Oct 27, 21, 8:38 am
  #7  
Ambassador, British Airways; FlyerTalk Posting Legend
 
Join Date: Apr 2012
Location: Leeds, UK
Programs: BA GGL/CCR, GfL, HH Diamond
Posts: 41,749
This is what I have found out:

Current rates

Band A (up to 2,000 miles)
Reduced (Y) - 13
Standard (all above Y) - 26

Band B (above 2,000 miles)
Reduced (Y) - 82
Standard (all above Y) - 180
Increases from 1 April 2022, announced in March 2021

Band A (up to 2,000 miles)
Reduced (Y) - 13
Standard (all above Y) - 26

Band B (above 2,000 miles)
Reduced (Y) - 84
Standard (all above Y) - 185
Announcements in the budget review documents on the Treasury site

2.183 The government is introducing a package of Air Passenger Duty (APD) reforms that will bolster UK air connectivity through a 50% cut in domestic APD, and further align with UK environmental objectives by adding a new ultra-long-haul distance band.

2.184 Following consultation, the government will introduce a new domestic band for APD set at 6.50. The rate will apply to all flights between airports in England, Scotland, Wales and Northern Ireland (excluding private jets). As a result, around 9 million passengers will pay less
APD in 2023-24. This will benefit connectivity between Great Britain and Northern Ireland.

2.185 In addition, the government is increasing the number of international distance bands from two to three, with the new distance bands set at 0-2,000 miles; 2,000-5,500 miles and 5,500 miles plus. The rates will be 13; 87 and 91 respectively for economy passengers.
This will align APD more closely with environmental objectives by ensuring that those who fly furthest incur the greatest level of duty.
A new domestic distance band for APD, covering flights within the UK. The domestic rates will be set at 6.50 for reduced rate, 13 for standard rate and higher rate passengers will continue to pay Band A rates.

An increase in the number of APD international distance bands from 2 to 3. A new Band C will be introduced, which applies to flights where the capital city of the final destination is over 5,500 miles from London. The new Band C reduced rate will be 4 greater than Band B and will use the Band B multipliers to determine the standard and higher rates.

These measures will have effect in relation to the carriage of passengers on or after 1 April 2023.
So I think the new rates from 1 April 2023 are:

Domestic band (UK, assume it doesn't include JER and IOM)
Reduced (Y) - 6.50
Standard (all above Y) - 13

Band A (non domestic up to 2,000 miles)
Reduced (Y) - 13
Standard (all above Y) - 26

Band B (2,000 miles up to 5,500 miles)
Reduced (Y) - 87
Standard (all above Y) - 192 (assumes same % increase as reduced rate)

New band (above 5,500 miles)
Reduced (Y) - 91
Standard (all above Y) - 201.00 (assumes same multiplier from reduced to standard as for band B)
So overall summary is


Last edited by KARFA; Oct 27, 21 at 9:40 am
KARFA is offline  
Old Oct 27, 21, 8:43 am
  #8  
 
Join Date: Nov 2017
Posts: 1,196
Originally Posted by megaloman
At least in France you can land at CDG and take TGV from the airport... how would that work in London? Land at Heathrow, take HEx to Paddington, tube to Euston, walk overground, take train to Manchester... and then your train to Manchester is likely to cost you more than your flight into Heathrow (or any other London airport).
Sure, there's no question our infrastructure is substandard at best... it just surprises me given the commitments to reducing emissions etc.
GordonMacPherson likes this.
RG1X is offline  
Old Oct 27, 21, 8:55 am
  #9  
 
Join Date: Nov 2013
Location: Glasgow
Programs: BAEC (Silver), IHG (Plat Elite)
Posts: 537
I still find it slightly perverse that WT+ attracts the higher rate. It is still economy after all, not business-lite.
chris1922Mk2 is offline  
Old Oct 27, 21, 8:57 am
  #10  
 
Join Date: Jun 2009
Location: MME (midway between NCL and LBA)
Programs: BA Gold, AF/KL Gold, Hilton Gold, Nordic Choice Gold
Posts: 734
The responses to the government's APD consultation were released this morning. Chart 3A shows a map of the bandings and Annex B gives the list of countries to be included in the 2,000-
5,500 mile band.


https://assets.publishing.service.go...LATE__002_.pdf
tigertanaka is offline  
Old Oct 27, 21, 9:03 am
  #11  
Ambassador, British Airways; FlyerTalk Posting Legend
 
Join Date: Apr 2012
Location: Leeds, UK
Programs: BA GGL/CCR, GfL, HH Diamond
Posts: 41,749
Originally Posted by chris1922Mk2
I still find it slightly perverse that WT+ attracts the higher rate. It is still economy after all, not business-lite.
So this is how the rates are defined, WT+ is basically not the lowest class so pays standard rate.

Reduced rate
For travel in the lowest class of travel available on the plane for seat pitches less than 1.016 metres (40 inches).

Standard rate
For travel in any other class of travel or where the seat pitch is more than 1.016 metres (40 inches).
KARFA is offline  
Old Oct 27, 21, 9:28 am
  #12  
 
Join Date: Nov 2017
Posts: 2,968
Originally Posted by megaloman
At least in France you can land at CDG and take TGV from the airport... how would that work in London? Land at Heathrow, take HEx to Paddington, tube to Euston, walk overground, take train to Manchester... and then your train to Manchester is likely to cost you more than your flight into Heathrow (or any other London airport).
If/when HS2 actually opens, I suspect this will change. HEx to OOC, very easy connection to long distance there. I suspect airlines will offer through-ticketing on the train when that happens.
Confus is offline  
Old Oct 27, 21, 9:50 am
  #13  
 
Join Date: Dec 2012
Programs: GGLfL
Posts: 1,125
I assume LCA continues to escape being in the >2000 mile band, despite being >2000 miles.

Is that because it's a specific exemption, or because another airport pair in the country (PFO) is <2000 miles, or they measure it capital to capital (to Nicosia), rather than to the airport (Larnaca)?
MrSimonR is offline  
Old Oct 27, 21, 9:52 am
  #14  
Ambassador, British Airways; FlyerTalk Posting Legend
 
Join Date: Apr 2012
Location: Leeds, UK
Programs: BA GGL/CCR, GfL, HH Diamond
Posts: 41,749
Distances are capital to capital, so it would be because London to Nicosia distance is less than 2000 miles.
KARFA is offline  
Old Oct 27, 21, 9:53 am
  #15  
 
Join Date: Jun 2009
Location: MME (midway between NCL and LBA)
Programs: BA Gold, AF/KL Gold, Hilton Gold, Nordic Choice Gold
Posts: 734
Originally Posted by MrSimonR
I assume LCA continues to escape being in the >2000 mile band, despite being >2000 miles.

Is that because it's a specific exemption, or because another airport pair in the country (PFO) is <2000 miles, or they measure it capital to capital (to Nicosia), rather than to the airport (Larnaca)?
It is measured from London to the capital city of the country.
tigertanaka is offline  

Thread Tools
Search this Thread

Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell or Share My Personal Information -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2023 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.