Tax on Reward Flights
#1
Original Poster
Join Date: Jan 2020
Posts: 79
Tax on Reward Flights
Hi Guys,
I've been planning a trip to the US next year and looking at different options in terms of dates and locations. I've asked a few questions on here which have been answered promptly and you lot have been a great help. I've got another minor question, but first to summarise what I've learned so far and a summary of my learnings...
- I'm looking to fly from GIB via London using Avios. I can't book a reward flight on that route online so I'm going to need to call to make a booking.
- I can use a BA Amex companion voucher and a Barclays Avios Plus cabin upgrade. I'll be booking myself and my son in Business using the companion voucher and paying a Premium Economy amount of Avios for my wife in Business.
- Reward flights sell out quickly, as I type there are only a few dates available at the end of July and beginning of August. We're looking to fly end of Aug so I'll need to call as soon as possible when flights are released.
My question this time is related to that last point and the impact of tax.
I understand that as I am flying from Gibraltar I will be paying reduced tax as opposed to flying from London. If I split my booking into two (e.g. calling to book the outbound leg first, then calling to book the return when that is released) how does that affect my tax? Would the tax on the return leg be calculated differently if booked as a round trip to and from Gibraltar, or is it the same as if I booked a single-leg journey from the US?
I hope that makes sense. Thanks again to all the great people who post here.
Mark
I've been planning a trip to the US next year and looking at different options in terms of dates and locations. I've asked a few questions on here which have been answered promptly and you lot have been a great help. I've got another minor question, but first to summarise what I've learned so far and a summary of my learnings...
- I'm looking to fly from GIB via London using Avios. I can't book a reward flight on that route online so I'm going to need to call to make a booking.
- I can use a BA Amex companion voucher and a Barclays Avios Plus cabin upgrade. I'll be booking myself and my son in Business using the companion voucher and paying a Premium Economy amount of Avios for my wife in Business.
- Reward flights sell out quickly, as I type there are only a few dates available at the end of July and beginning of August. We're looking to fly end of Aug so I'll need to call as soon as possible when flights are released.
My question this time is related to that last point and the impact of tax.
I understand that as I am flying from Gibraltar I will be paying reduced tax as opposed to flying from London. If I split my booking into two (e.g. calling to book the outbound leg first, then calling to book the return when that is released) how does that affect my tax? Would the tax on the return leg be calculated differently if booked as a round trip to and from Gibraltar, or is it the same as if I booked a single-leg journey from the US?
I hope that makes sense. Thanks again to all the great people who post here.
Mark
#2
Ambassador, British Airways; FlyerTalk Posting Legend
Join Date: Apr 2012
Location: Leeds, UK
Programs: BA GGL/CCR, GfL, HH Diamond
Posts: 42,968
There is some information in the wiki of the amex companion voucher thread on this approach. For bookings to the US is it not recommended. The voucher will be applied across to the exUS return booking, but there is no recalculation of taxes/fees/charges overall. You would therefore end up paying exUS carrier surcharge which is very hefty.
#3
FlyerTalk Evangelist
Join Date: May 2014
Location: UK
Programs: BA Gold
Posts: 12,262
There’s often very good cash fares from AGP up the road, maybe not right now but they do come and go around £1200 (recently £800!) each in business, this will lose the requirement for availability on Avios and you’ll also earn TPs and Avios
#4
Original Poster
Join Date: Jan 2020
Posts: 79
Also, I only see AGP-EWR, can you fly to other destinations in US from AGP?
#5
Original Poster
Join Date: Jan 2020
Posts: 79
There is some information in the wiki of the amex companion voucher thread on this approach. For bookings to the US is it not recommended. The voucher will be applied across to the exUS return booking, but there is no recalculation of taxes/fees/charges overall. You would therefore end up paying exUS carrier surcharge which is very hefty.
#7
FlyerTalk Evangelist
Join Date: Oct 1999
Location: Juneau, Alaska.
Programs: AS 75K;BA Silver;AA G;HH Dia;HY Glob
Posts: 15,819
BA Forum Dashboard
Within that dashboard there is:
BA American Express companion voucher | master thread
#8
Original Poster
Join Date: Jan 2020
Posts: 79
At the top of the BA forum is a forum dashboard thread with links to various important threads:
BA Forum Dashboard
Within that dashboard there is:
BA American Express companion voucher | master thread
BA Forum Dashboard
Within that dashboard there is:
BA American Express companion voucher | master thread
Im still not sure if the separate booking will take my starting location into account tax wise though. Does anyone have experience of this?
Thanks again.
#9
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: 3,588
Thanks for this. It seems then that booking the outbound leg is fine, but don’t book two one way and ask for them to be merged?
Im still not sure if the separate booking will take my starting location into account tax wise though. Does anyone have experience of this?
Thanks again.
Im still not sure if the separate booking will take my starting location into account tax wise though. Does anyone have experience of this?
Thanks again.
A separate return booking would a starting location of the US. TFCs will be calculated on that basis. If you want one booking and to pay the GIB level of TFCs for the whole trip, then you may need to wait until both directions are in date range/have availability, and book in one go.
#10
Original Poster
Join Date: Jan 2020
Posts: 79
Bookings won't be merged but the use of your voucher across both bookings is allowed/noted.
A separate return booking would a starting location of the US. TFCs will be calculated on that basis. If you want one booking and to pay the GIB level of TFCs for the whole trip, then you may need to wait until both directions are in date range/have availability, and book in one go.
A separate return booking would a starting location of the US. TFCs will be calculated on that basis. If you want one booking and to pay the GIB level of TFCs for the whole trip, then you may need to wait until both directions are in date range/have availability, and book in one go.
#11
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: 3,588
One way would be to play with pricing the route as if you were paying cash. Select the cabin that you want to end up in, ignore the fare, and note the TFC breakdown each way, as well as compare versus booking as a return. On your redemption booking, Reward Flight Saver options might distort those numbers, but it'll give you an idea on how much TFCs for two one-ways compared to a return will be.
#12
Join Date: Aug 2014
Posts: 2,660
Bookings won't be merged but the use of your voucher across both bookings is allowed/noted.
A separate return booking would a starting location of the US. TFCs will be calculated on that basis. If you want one booking and to pay the GIB level of TFCs for the whole trip, then you may need to wait until both directions are in date range/have availability, and book in one go.
A separate return booking would a starting location of the US. TFCs will be calculated on that basis. If you want one booking and to pay the GIB level of TFCs for the whole trip, then you may need to wait until both directions are in date range/have availability, and book in one go.
#13
FlyerTalk Evangelist
Join Date: Oct 1999
Location: Juneau, Alaska.
Programs: AS 75K;BA Silver;AA G;HH Dia;HY Glob
Posts: 15,819
If the OP just books a separate inbound flight online at midnight and then calls in the morning to have it added to the 241 then he will be stuck with with surcharges ex-GIB for the outbound and ex-US for the inbound.