About APD
Understanding Air Passenger Duty
Air Passenger Duty is a UK excise duty charged on passengers departing from most UK airports on chargeable aircraft. Understanding your obligations is the first step — ensuring you meet them accurately and on time is where APD Direct comes in.
The basics
What is Air Passenger Duty?
Air Passenger Duty (APD) is an excise duty levied by the UK government on passengers departing from most UK airports on chargeable aircraft.
APD is charged on the operator or owner of the aircraft, not directly on the passenger, though in practice the cost is typically passed on through ticket prices. The operator — or their appointed UK tax representative — is responsible for registering with HMRC, calculating the correct duty, and submitting monthly returns.
You must register and pay APD if you operate a fixed-wing aircraft from most UK airports that weighs 5.7 tonnes or more, and carries passengers — whether or not they have paid for the flight. Registration must be completed no later than 7 days after the first chargeable flight.
Scope
Who does APD apply to?
APD applies to operators of chargeable aircraft departing from most UK airports. This includes:
Overseas operators are required by HMRC to appoint a UK-based representative for ensuring APD obligations are met.
Rate calculation
How is APD calculated?
APD is calculated per chargeable passenger based on various factors: Primarily, the destination of the flight and the class of travel.
Destination bands
Domestic band
Flights between UK airports. A reduced domestic rate applies to encourage connectivity within the UK.
Band A
Destinations with a capital city within 2,000 miles of London, including most of Europe and North Africa.
Band B
Destinations with a capital city between 2,001 and 5,500 miles from London, including the USA, Canada, sub-Saharan Africa, and most of Asia.
Band C
Destinations with a capital city over 5,500 miles from London, including the Far East, Australasia, and the Pacific.
Rate classes
Reduced rate
Applies to passengers travelling in the lowest class of travel available on the aircraft with a seat pitch of less than 40 inches.
Standard rate
Applies to passengers travelling in any class other than the lowest class available on the aircraft with a seat pitch of more than 40 inches.
Higher rate
Applies to passengers on aircraft authorised to carry fewer than 19 passengers, typically business jets and private charter.
APD rates are set by the UK government and reviewed annually. APD Direct monitors all rate changes on your behalf and ensures your returns always reflect the current applicable rates.
Reducing your liability
Exemptions and reliefs
Not all passengers or flights are subject to APD. A number of exemptions apply under HMRC rules, and correctly identifying them can significantly reduce your liability. Key exemptions include:
Children and Infants
Infants under 2 years old without a purchased seat are exempt regardless of class. Children under 16 on the date of the flight are exempt only if travelling in the lowest class of travel available on the aircraft. Children under 16 travelling in any other class, or on business jets, are not exempt.
Flight crew and cabin attendants
Flight crew, cabin attendants, and certain other personnel (such as those escorting passengers or undertaking safety, security, or catering duties) are exempt, provided they travel at the airline's expense. The exemption also applies if they begin a return journey within 72 hours of completing those duties to their home base.
Transit and connecting passengers
A passenger on a plane that makes a stop en route in the UK but does not change aircraft is exempt for the leg immediately after the stop. Passengers on a connecting flight are exempt on the second or subsequent leg of their journey, subject to HMRC's connecting flight rules.
Short pleasure flights
Passengers on flights lasting 60 minutes or less that begin and end at the same airport are exempt. The 60 minutes is measured from the aircraft's doors closing to them reopening.
Flights to the Highlands and Islands
Passengers on flights departing from airports in the Scottish Highlands and Islands region are exempt from APD. This includes the Highland Region, Western Isles, Orkney, Shetland, Argyll and Bute, Arran, and certain parishes in the Moray District.
Emergency and public service flights
Some military, police, customs, search and rescue, humanitarian, authorised emergency medical service flights, and flights operated under a public service obligation are excluded from APD.
Passengers carried under a statutory obligation
Passengers carried free of charge under a statutory obligation are exempt. This includes individuals refused admission to the UK who must be repatriated at the airline's expense, and Civil Aviation Authority inspectors on board to inspect the aircraft or crew.
Exemptions are subject to HMRC rules and conditions. APD Direct reviews all applicable exemptions for your operation to ensure you are not paying more than you are legally required to.
Scotland
Scottish Air Departure Tax
A separate regime for departures from Scottish airports
Air Departure Tax (ADT) is the Scottish equivalent of APD, replacing the UK-wide duty for passengers departing from airports in Scotland. ADT was devolved to the Scottish Parliament under the Scotland Act 2016, giving the Scottish Government the power to set its own rates and bands.
ADT is expected to come into effect from 01 April 2027, following a period of legislative development. Once in force, operators departing from Scottish airports will be required to account for ADT rather than APD on those departures.
APD Direct is monitoring the introduction of ADT closely and will ensure that clients operating from Scottish airports are fully prepared for the transition, with registrations, systems, and returns updated in advance of the changeover date.
Our role
How APD Direct helps you stay compliant
Managing APD accurately requires detailed knowledge of the legislation, current rates, applicable exemptions, and HMRC's administrative requirements. APD Direct takes on this responsibility on your behalf:
Accurate rate band classification
We classify every departure against the correct destination band and class of travel, ensuring the right rate is applied to every passenger on every flight.
Exemption identification
We review your passenger data and flight schedules to identify all applicable exemptions, so you never pay more APD than you are legally required to.
Monthly return preparation and submission
We prepare and submit your monthly APD returns to HMRC on time, every time, with full supporting calculations.
Rate change monitoring
We track all HMRC announcements and legislative changes, updating your returns automatically when rates or rules change.
UK representative services for overseas operators
We act as the appointed UK administrative representative for overseas airlines and operators, taking on the administrative and compliance responsibilities required by HMRC.
Ready to simplify your APD compliance?
Let APD Direct manage your returns, rates, and exemptions.