On 28 August 2026, HMRC published the latest Air Passenger Duty (APD) Bulletin as part of its National Statistics series, providing comprehensive data on APD receipts, passenger numbers by destination band, and rate changes effective from 1 April 2026. APD remains a significant fiscal lever, generating over £3.8 billion annually, with rates differentiated by distance (Band A: 0-2,000 miles; Band B: 2,001-5,500 miles; Band C: over 5,500 miles) and class of travel (standard, premium, private jet). The bulletin includes preliminary 2025/26 outturn data and forecasts for 2026/27.
Key Takeaways
- Rate Increases Aligned with Inflation: The 2026/27 rates reflect RPI-linked uprating, with Band C premium class rising to £607 per passenger. Airlines must update booking systems by 1 April 2026 to collect correct duty; errors trigger under-declaration penalties and interest.
- Policy Review Signals Potential Band Restructuring: The bulletin references the Treasury’s ongoing review of APD bands to address competitive distortions for long-haul routes and environmental objectives. Stakeholders should monitor the Autumn Budget 2026 for possible band compression or a frequent flyer levy, which would fundamentally alter cost structures for network carriers.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement