Simon Calder shares his opinion on the recently implemented air passenger duty and offers advice on how to circumvent it.

The APD, known as the tax for passengers over the age of 16 flying from most UK airports, has been raised once again by the chancellor’s declaration.

In the 2025-26 taxation period, APD will increase at the expected rate of inflation for customers in the most affordable seats. However, it will increase more than that for all other classes beyond basic economy.

Politicians view air passenger duty as an ideal form of taxation. It is challenging to circumvent and effortless to obtain, as airlines handle all the logistics and submit a check to the Treasury.

The term “APD” is exclusive to the United Kingdom and is a widely debated subject.

The argument is expected to become more heated as more and more people find ways to avoid paying APD.

These are the essential inquiries and responses.

Kenneth Clarke, the final Conservative chancellor of the 20th century, was the individual held accountable for APD. He explained to me that aviation had a unique status as the only mode of transportation that did not incur any taxes on its fuel usage.

Governments have long believed it to be acceptable to impose taxes on petrol, diesel fuel, and all forms of transportation by land and sea. However, due to historical reasons, airfare has not been subject to taxes.

As per my observation, that was an unusual occurrence, especially since individuals who utilize air travel typically have a higher financial status compared to those who use other modes of transportation.

Due to international aviation agreements prohibiting a fuel tax on jet kerosene, Mr. Clarke opted to impose a £5 air passenger duty on European flights and £10 on long-haul flights. This charge was applicable to all passengers over the age of one departing from a UK airport and went into effect in 1994, only one year prior to easyJet’s first flight.

The majority of the increase can be attributed to its portrayal as an environmentally friendly initiative, reducing the demand for air travel. Additionally, a significant portion of those who are impacted by the increase are international tourists who do not have the right to vote in the UK.

Gordon Brown, the future chancellor, decided to increase the tax for premium business and first-class seats. However, there was one unusual exception that has now been eliminated, which allowed passengers on the expensive Concorde aircraft to pay the same amount as budget airline travelers headed to Morocco.

Starting from 2016, the Age Payment Difference (APD) does not have to be paid by minors under the age of 16 who are flying in basic economy. However, it is still required for those traveling in premium classes.

In 2023, Rishi Sunak reduced the air passenger duty by half for domestic flights, prompting a shift from rail, sea, and road travel to air travel for trips within the UK. However, in the 2024 spring Budget, Jeremy Hunt announced an increase in the duty.

The cost is determined by two variables: the destination listed on the traveler’s ticket and their chosen ticket class.

The designated “end destination” holds significance. When using a “continuous ticket,” such as Manchester-Amsterdam-Hong Kong or Birmingham-Frankfurt-Mumbai, the extended rate will be charged (unless the transit point is exceeded by 24 hours).

In any class other than basic economy, a higher fee is required for passengers aged two and above.

Travelers who choose to fly on private jets incur significantly higher costs.

There are four distinct categories in terms of travel destinations: UK domestic flights and three classes for international travel.

Starting on April 1, 2024, the following will be in effect:

The tax for private jets ranges from £78 to £607 per individual.

If a family has four members (with children ages two to 15), the overall APD amount is:

Listen to Simon Calder’s podcast on air passenger duty

Here are a few possible ways to avoid paying taxes:

1. Don’t fly.

Travel on basic economy if you are under 16 years old (or under two people if you are in business class).

Take one flight to the UK and depart within 24 hours on a separate flight, both of which are covered under the same ticket.

Work as a pilot or assigned to the cabin crew.

Return to your home country after being denied entry to the UK.

Travel on a flight departing from a UK airport that is not obligated to pay air passenger duty.

Travel from the region of the Scottish Highlands and Islands, encompassing Orkney, Shetland, the Western Isles, Oban, Campbeltown, and Inverness.

Despite flying from Inverness to London Heathrow and then continuing on to a long-haul destination, the tax savings still apply. For instance, a trip from Aberdeen to New York on British Airways in late November costs £392 for a round-trip ticket, while flying from Inverness only costs £316, resulting in a 20% savings on the total fare.

Flights from Belfast to far destinations also do not include taxes.

One way to be more environmentally friendly is to use land transportation to reach a foreign airport, such as taking a boat or traveling overland from Northern Ireland to Dublin, taking a boat to the Netherlands, or taking a Eurostar train to Paris, Brussels, or Amsterdam.

You have the option to travel to Amsterdam, Paris, Dublin, or another European airport and then purchase a separate ticket. When flying across the Atlantic, there is an added advantage of going through the Irish capital, as you can complete US arrival procedures at the Dublin airport.

However, you will be responsible for any potential issues from a missed connection. Additionally, due to the high competition for airfare in the UK, there may not be any cost savings.

One option is to incorporate a layover of at least 24 hours at the connecting destination, which can result in a lower rate being applied by the airline. Essentially, you will be saving £65, with the chancellor effectively covering the cost of your brief vacation.

Reykjavik and Istanbul are particularly good for North America and Asia/Africa respectively.

If you have a through ticket, the business-class rate will be applied for the entire trip.

The airline companies typically collect Advance Passenger Duty (APD) payments up to a year ahead of time, but they are only required to remit these fees to the government when the passenger actually flies. Although it may be possible to request a refund, some airlines and travel agents make it difficult or pointless due to high fees that exceed the amount of the tax refund.

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