From the 1st of October this year air passenger duty is changing. George Osborne announced that category D of the tax will be scrapped meaning all long haul flights will now drop down to category C.
So how does Air passenger duty work? A flights tax rate is determined by the distance from London to the destinations capital, travelling from London to Washington is 3675 miles and currently costs £83 per passenger in air duty for an economy ticket. That tax rate is the same for travelling a further 2700 miles to Hawaii due to the capital city rule. This has meant travelling to The Us has always been cheaper making the US a more attractive prospect for travellers than say travelling to Australia or India and China.
Airlines have for years complained about the complex and confusing nature of how the tax is calculated, the changes now puts emerging economic powers such as India, China and Australia in the same tax bracket promoting further travel and business arrangements in these strong financial growth areas.
But for the first time Private jets that were exempt from APD will now be forces to pay tax on their movement from the 1st of October.
For full details of how air passenger duty works simply click the link provided. http://www.hmrc.gov.uk/rates/apd.htm