Following the approval of the Customs and Excise Acts (Application) (Amendment) Order 2014 at the October sitting of Tynwald, the Treasury is able to confirm that the structure for the charging of air passenger duty(APD) is to change with effect from 1 April 2015.
APD is an excise duty which is due in respect of chargeable passengers on chargeable aircraft involving flights from the Island. The rate of APD depends on the passengers’ final destination and the class of travel. There are four destination bands based on the distance between London and the capital city of the destination country or territory.
Most passengers leaving the Island are liable to APD at the lowest rates, as this would include flights to the UK, Ireland and Western Europe, and all destination countries or territories whose capital city is up to 2,000 miles from London. The other bands take effect at distances of up to 4,000 miles, up to 6,000 miles and over 6,000 miles, with the duty-rates increased for each band.
For journeys beginning on and after 1 April 2015, the four-tier banding structure is being reduced to a two-tier structure. The first band, comprising destinations whose capital is up to 2,000 miles from London remains unchanged. The second band will include all other destinations, thus providing a considerable reduction in APD chargeable when passengers are flying to the most distant destinations.
The new rates of APD will be as follows:
| _ | Band A | Band B (i.e. destinations with a capital city more than 2,000 miles from London) |
|---|---|---|
| Standard class travel | £13.00 | £71.00 (currently £69.00) |
| Any other class | £26.00 | £142.00 (currently £138.00) |
Currently, Band C (destinations up to 6,000 miles) journeys involve APD charges of £85.00 or £170.00; and Band D (destinations over 6,000 miles) journeys involve APD charges of £97.00 or £194.00.
For more information see the Customs and Excise website or contact Customs and Excise.
