Channel Islands treated as international for airline passenger duty

The rate of airline passenger duty (APD) on flights to the UK from the Isle of Man and Channel Islands has to be treated as international flights, HMRC has confirmed

The guidance on APD, issued in January, has now been updated to confirm that ‘flights to and from the Channel Islands and the Isle of Man are international for APD purposes, as they are not part of the UK’.

The amount of APD due is based on the rate band of the final destination of a connected flight and the class of travel. If a passenger travels in more than one class on their journey, the standard rate is due on the whole journey.

In all cases, the plane operator for the first flight pays duty on the whole journey.

There are different rules used to work out if flights are connected, depending on whether they’re domestic or international connections. The 4 types of flights are:

  • a domestic connection where both are UK domestic flights;
  • a domestic connection from an international flight to a domestic flight;
  • an international connection with a domestic UK flight to an international flight; and
  • an international connection with an international flight to another international flight.

APD rates from 1 April 2018

Bands (distance in miles from London)Reduced rate (lowest class of travel)Standard rate (1) (other than the lowest class of travel)Higher rate (2)
Band A (0-2000 miles)£13£26£78
Band B (over 2000 miles)£78£156£468

(1) 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.

(2) The higher rate applies to flights aboard aircraft of 20 tonnes and above with fewer than 19 seats.

 

HMRC guidance, Air passenger duty and connected flights 

Report by Sara White

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