3/19/2023 0 Comments Passenger band![]() ![]() It is not anticipated that this measure will have any direct impacts on those in groups sharing protected characteristics. This measure is not expected to impact on family formation, stability or breakdown. Those individuals who travel to domestic destinations may see a reduction in air fares and those individuals who travel to ultra long-haul destinations may see an increase in air fares.Ĭustomer experience is expected to stay broadly the same because this measure does not change how individuals interact with HMRC. There is expected to be no impact on passengers who travel to short-haul and long-haul destination as the increase in rates is in line with the retail price index, constituting a real terms freeze. This measure will impact on some individuals who travel by air. Impact on individuals, households and families The costing includes a behavioural effect to account for the change in flights taken resulting from the change in the tax rates. This measure is not expected to have any significant macroeconomic impacts. More details can be found in the policy costings document published alongside Autumn Budget 2021. These figures are set out in Table 5.1 of the Autumn Budget and Spending Review 2021 and have been certified by the Office for Budget Responsibility. Summary of impacts Exchequer impact (£million) 2021 to 2022 The higher rate applies to flights aboard aircraft of 20 tonnes and above with fewer than 19 seats.If any class of travel provides a seat pitch in excess of 1.016 metres (40 inches) the standard rate is the minimum rate that applies.Standard rate (1) (other than the lowest class of travel) The Air Passenger Duty rates for the tax year 2023 to 2024 will be as follows (from April 2023): Bands (distance in miles from London) Legislation will be introduced in Finance Bill 2022-23 to amend sections 30 and 30A of, and Schedule 5A to FA 94 to reflect the rates and destinations in the restructured bands. Section 30 of Finance Act 1994 (FA 94) sets out the rates of Air Passenger Duty, section 30A provides for the setting of the Northern Ireland long haul rates of duty and Schedule 5A sets out the territories in destination bands. This measure will have effect in relation to the carriage of passengers on or after 1 April 2023. The rates for the tax year 2023 to 2024 were announced at Autumn Budget 2021 to give industry sufficient advance notice of changes in Air Passenger Duty rates. The consultation closed on 15 June 2021 and a summary of responses was published at Autumn Budget 2021. This measure was announced at Autumn Budget 2021 and follows the consultation on aviation tax reform announced at Budget 2020 and published in Spring 2021. This ensures that Air Passenger Duty receipts are maintained in real terms and that airlines make a fair contribution to the public finances. The increases in the short-haul and long-haul rates by the retail price index constitute a real terms freeze. This measure supports UK air connectivity and aligns Air Passenger Duty more closely with the government’s environmental objectives. The rates for the short and long-haul bands will increase in line with the retail price index (RPI) as forecast at Autumn Budget 2021. The reduced rate for the domestic band will be set at £6.50 and for the ultra long-haul band at £91. The measure will also set Air Passenger Duty rates for the tax year 2023 to 2024. The measure will introduce a new domestic band for Air Passenger Duty (APD) for flights within the UK and a new ultra long-haul band, covering destinations with capitals located more than 5,500 miles from London. Airlines and other aircraft operators and their passengers. ![]()
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