Chancellor Rishi Sunak made the announcement as part of his Budget on Wednesday (27 October) when he also said that APD on domestic flights would be halved from April 2023.
Sunak said the new long-haul band of APD would be charged at £91 per passenger flying in economy. He added that this rate would mean that “less than 5%” of airline travellers would pay more.
“We are also making changes to reduce carbon emissions from aviation. Most emissions come from international – rather than domestic – aviation, so we are introducing from April 2023 a new ultra long-haul band in Air Passenger Duty," he explained. "Those that fly the furthest will pay the most.”
The chancellor said that there would be a “return leg exemption” on APD for domestic flights between UK airports from April 2023, instead of the current anomaly where passengers have to pay the tax on both legs.
“This will help to cut the cost of living for nine million passengers by cutting their duty by half,” he added. “It will bring people together across the United Kingdom, and because they tend to have a greater proportion of domestic travellers it is a boost to regional airports like Aberdeen, Belfast, Inverness and Southampton.”
Sunak said this move to cut APD on domestic flights would help support regional airports and he added that the government would be continuing to offer financial support to English airports for a further six months to help them get through the winter.
The changes mean that from April 2023, the domestic band of APD will be £6.50 per passenger travelling in economy, compared with the current rate of £13.
The short-haul rate for international flights of up to 2,000 miles will remain at £13, while long-haul flights between 2,000 and 5,500 miles will be charged at £87 per passenger (up from the current £82), and the new “ultra long-haul” rate will be £4 higher at £91.
