Air Passenger Duty (APD) is charged on each passenger carried from a UK airport on a chargeable aircraft, and it is the aircraft operator, not the passenger, who registers, files returns and pays HMRC. The amount depends on the destination band of the passenger’s final destination (domestic, A, B or C) and the class of travel: the reduced rate for the lowest class, the standard rate for anything better, and a higher rate for large private jets.

Who has to account for Air Passenger Duty?

APD is set out in Chapter IV of Part I of the Finance Act 1994. Section 28 charges the duty on the carriage of each chargeable passenger on a chargeable aircraft. The duty becomes due when the aircraft first takes off on the passenger’s flight, and section 28(2)(b) makes it payable by the operator of the aircraft. The passenger has no liability to HMRC.

Under section 29, an aircraft is chargeable if it is a fixed wing aircraft designed or adapted to carry people in addition to the flight crew, its authorised take off weight is at least 5.7 tonnes, and it is fuelled by kerosene. Helicopters, and aircraft not fuelled by kerosene, are therefore outside the charge.

An operator can register before its first chargeable flight but must register no later than 7 days after it. Operators based outside the UK must appoint a fiscal representative, and HMRC may ask for a bond where a representative is appointed for administrative purposes only. HMRC can also ask any operator for a deposit or bond if it thinks there is a risk the duty will not be paid.

How are the destination bands decided?

Duty is based on where the passenger’s journey ends, which for a ticketed passenger is the final destination unless the journey is broken by a flight that is not followed by a connected flight (section 30(5) and (6)). From 1 April 2023 there are four bands:

  • Domestic: destinations in England, Scotland, Wales and Northern Ireland.
  • Band A: 0 to 2,000 miles from London to the destination’s capital. This covers the EU and EEA plus listed countries such as Switzerland, Turkey, Morocco, Tunisia, Ukraine, Serbia and the Channel Islands and Isle of Man (which are not part of the UK for APD).
  • Band B: 2,001 to 5,500 miles, including the United States, Canada, the United Arab Emirates, India, China and Brazil.
  • Band C: over 5,500 miles; any destination not listed in bands A or B.

Which rate applies: reduced, standard or higher?

Section 30 gives two rates for each band. The reduced rate applies if the passenger’s agreement for carriage provides for standard class travel on every flight of the journey; otherwise the standard rate applies. Standard class travel means the only class on the aircraft or, if there is more than one, the lowest class. A class does not count as the lowest class if its seats have a pitch of more than 1.016 metres (40 inches), so a premium economy cabin with a generous pitch can push passengers into the standard rate.

The higher rate replaces both where the aircraft has an authorised take off weight of 20 tonnes or more but is not authorised to seat more than 18 passengers (section 30(4F)). In practice this targets large private and business jets.

Band (from 1 April 2026) Reduced rate Standard rate Higher rate
Domestic £8 £16 £142
Band A £15 £32 £142
Band B £102 £244 £1,097
Band C £106 £253 £1,141

HMRC has already published the rates from 1 April 2027. For example, the band A reduced rate rises to £15.49 and the band B standard rate to £251.95 for indirect flights. Rates for earlier years are on HMRC’s historic rates page, which you need when checking an older return.

How do connected flights change the charge?

HMRC treats connected flights as one journey, charged by reference to the final destination and the class of travel. The operator of the first flight pays duty for the whole journey. If the first flight is exempt, for example because it starts outside the UK, the whole journey is exempt. If a passenger travels in more than one class, the standard rate is due on the whole journey.

Whether flights connect depends on timing and on the ticket:

  • International connection: where the second flight is an international flight from the UK, it must be scheduled to leave within 24 hours of the first flight’s scheduled arrival.
  • Domestic connection: if the first flight arrives between 4am and 5pm, the second must leave within 6 hours; if it arrives between 5pm and midnight, by 10am the next day; if it arrives between midnight and 4am, by 10am the same day. A domestic return to the starting airport (for example Manchester to Edinburgh and back) is not connected.
  • Ticketing: the flights must be on the same ticket or on conjunction tickets. Separately booked flights that happen to meet the timings do not qualify.

HMRC’s examples show the effect. Manchester to New York via London, with the London flight leaving the next morning within 24 hours, is charged at the band B rate for the whole journey. London to Rio via Madrid with more than 24 hours in Madrid is charged at the band A rate, because the journey is treated as ending in Madrid.

Illustration only. A family of two adults and two children aged 10 and 14 fly economy from Bristol to Malaga in 2026 to 2027. The children under 16 in the lowest class are exempt, so the airline accounts for 2 x £15 = £30. If the same family flew business class, the children would not be exempt and all four would be charged 4 x £32 = £128.

Which passengers and flights are exempt?

  • children under 2 without their own seat, in any class; with a purchased seat, only in the lowest class;
  • children under 16 on the date of the flight travelling in the lowest class (not in other classes or on business jets);
  • flight crew and cabin attendants, and certain staff travelling at the airline’s expense to escort, repair, secure or provide catering;
  • transit passengers who stay on the aircraft, for the leg after the stop, and passengers on the second or later flight of a connected journey;
  • passengers on pleasure flights of 60 minutes or less that start and end at the same place;
  • passengers departing from airports in the Scottish Highlands and Islands region (but not those flying into it);
  • military, police, customs, search and rescue, humanitarian, emergency medical, public service obligation and research or training flights.

Direct long haul flights from Northern Ireland to destinations outside the UK and band A are not charged. Operators do not show them on the return but report them quarterly on a spreadsheet to HMRC’s Central Assurance Team.

In Scotland, Revenue Scotland says Air Departure Tax, a fully devolved tax, will replace APD from 1 April 2027. Until then APD applies to Scottish departures in the usual way.

How do operators file returns and pay?

Once registered, an operator receives a notice to file and submits returns monthly, or annually if HMRC has approved it for annual accounting. The annual scheme is open to businesses likely to pay £500,000 or less in duty a year. If systems cannot produce actual passenger numbers, a special accounting scheme can be used to estimate them. If a deadline falls on a weekend or bank holiday, the return and payment must arrive on the last working day before.

The payment deadline is extended by 7 calendar days for payments made by Direct Debit, Faster Payments, CHAPS or Bacs. Errors can be corrected on a later return; underpaid duty attracts interest (see our guide to HMRC late payment interest) and may attract a penalty. Business records must be kept for 6 years.

An occasional operator making 12 flights or fewer a year with a liability under £5,000 can use the Occasional Operator Scheme instead. It reports each flight on a simple form and pays within 7 days of the first flight, without regular returns.

What are the common mistakes?

  • Charging a child the reduced rate instead of exempting them, or exempting a child travelling in a higher class.
  • Treating premium economy as the lowest class when seat pitch is over 40 inches.
  • Claiming connection relief for flights on separate bookings or with a gap of more than 24 hours.
  • Using the standard rate for a large business jet that falls within the higher rate test.
  • Registering late. The 7 day limit applies from the first chargeable flight, and a late registration can bring a penalty; see HMRC failure to notify penalties.

Other rates and dates are on our 2026 to 2027 rates page and our UK tax deadlines calendar.

If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.

Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.