Flights – Tax Hike Coming

From November 1, 2010 a family of four flying economy class to New Zealand will pay an increased total Air Passenger Duty (APD) of £340 (currently £220).  The same flights in other classes will pay a whopping £680 in tax (currently £440). 

A family of four taking a holiday in Florida this winter will incur APD on their flights of £240 (currently £180) for Reduced rate (economy) class, and £480 (currently £360) for other classes. 

The following figures are taken from the HM Revenue & Customs website:

(Note: Standard rate refers to classes other than the lowest Reduced rate. Where there is only one class of travel the Standard rate normally applies)

Band D  Increases by £30/Reduced rate (from £55-£85) and by £60/Standard rate (from £110 to £170). Includes Argentina, Australia, Malaysia, New Zealand

Band C  Increases by £25/Reduced rate (from £50 to £75) and by £50/Standard (from £100 to £150.  Includes: Bahamas, Barbados, Belize, Brazil, China, Costa Rica, Cuba, India, Japan, Kenya, Maldives, Mexico, Nepal, S. Africa, Thailand, Virgin Islands

Band B  Increases by £15/Reduced rate (from £45 to £60) and by £30/Standard (from £90 to £120). Includes: U.S., Canada, Bermuda, Egypt, Saudi Arabia

Band A  Increases by £1/Reduced rate (from £11 to £12) and by £2/Standard (from £22 to £24).  Includes: Cyprus, Greece, Gibraltar, Italy, Madeira, Malta, Portugal, Spain, Balearic Isles, Canary Isles, Tunisia, Turkey

The UK coalition government plans to look at APD again this autumn with a view to possibly changing the policy from per-passenger tax to a per-plane tax. 

In the meantime, be aware that the APD is set to rise significantly on November 1.  Many in the travel industry are fearful that the rise will price a lot of travellers out of the market.

For a great deal on your travel insurance click here.

Flickr cc Image:  Marcin Wichary