Air passenger duty (APD) is set to increase on 1 April 2026 and again on the same date in 2027, Chancellor Rachel Reeves has announced. The first rise is above inflation, while the second is in line with the retail prices index. By summer 2027, a family of four flying premium economy to Orlando will pay over £1,000 in tax for leaving the UK in anything better than basic economy.
APD is a tax on passengers aged 16 and over flying from most UK airports. It is considered a near-perfect tax by politicians because it is difficult to avoid and easy to collect, with airlines handling collection and remittance to the Treasury. The Treasury noted that HMRC will incur no costs from the changes, and many who pay are foreign visitors who do not vote in UK elections.
The levy was introduced in 1994 by then-Chancellor Kenneth Clarke, who argued aviation was the only form of transport not paying fuel tax. International agreements generally prohibit taxing jet kerosene, so Clarke imposed a departure tax: £5 for European flights and £10 for long-haul. The tax has since increased, often presented as a green measure. In 2023, Rishi Sunak halved APD on domestic flights to encourage air travel within the UK.
APD rates depend on destination and travel class. From 1 April 2025, rates range from £7 (domestic, basic economy) to £1,141 (private jets, long-haul). From 1 April 2027, rates will include pence, with private jet tax reaching up to £1,178.20 per person. Children under 16 in basic economy are exempt, but those in premium classes must pay.
Passengers can avoid APD by: being under 16 and travelling in basic economy; flying into and out of the UK within 24 hours on the same ticket; or flying from exempt airports such as those in the Scottish Highlands and Islands. The debate over APD is expected to intensify as more travellers seek ways to avoid the tax.
