Bizav Passengers Face Higher Taxes in the UK

Business aircraft passengers flying out of UK airports are facing rate increases for air passenger duty (APD) of between 50 and 58 percent under revisions to the tax the government announced last month.

Beginning April 1, 2015, a new higher rate of £426 ($690) will apply to aircraft weighing more than 20 metric tons (44,091 pounds) and with fewer than 19 seats on flights of more than 2,000 miles. For flights shorter than 2,000 miles, the rate will be £78 ($126). However, under wider changes that have seen the number of APD rate bands reduced to just two, charges for flights longer than 6,000 miles will be lower.

The British Business and General Aviation Association has complained that the APD changes “came as a complete surprise” and warned that they could have “unintended consequences.” It has requested consultation with UK tax officials in a bid to secure further amendments to the changes before they take effect next year. Lindsey Oliver, the group’s operations and development manager, told AIN that action is needed “before significant damage is done to corporate business aviation and the inward investment it brings to the UK.”