Air Passenger Duty tax to rise in 2026

The Labour government has announced increases to air passenger duty (APD) in 2026, with private jets seeing the biggest rise.

On Wednesday 30 October 2024, the Labour government delivered its first budget since coming into power, with Chancellor Rachel Reeves setting the new rates for APD. The changes will take effect on 1 April 2026 and will follow the increases already put in place by the previous Conservative government from 1 April 2025.

Introduced in 1994, APD is an excise duty charged to adult passengers flying from a United Kingdom or Isle of Man airport. It is paid in addition to airport taxes and fees. Initially hailed as a ‘green tax’ that would reduce carbon dioxide emissions, APD was first set at £5 for European flights and £10 for long-haul flights.

In announcing the changes, Chancellor Rachel Reeves told the Commons that APD “has not kept up with inflation in recent years so we are introducing an adjustment, meaning an increase of no more than £2 for an economy class short-haul flight”.

APD rates are based on the length of the flight and the class of cabin. It is charged across four bands – based on the distance flown – and at three rates: ‘reduced’ for economy travel, ‘standard’ for travel in premium classes, and ‘higher’ for private jets.

The changes announced in this budget will mean increases of £2 for short-haul economy flights, £12 for long-haul flights, and a 50% rise on the higher rate.

What are the new Air Passenger Duty charges?

From 1 April 2026, the rates will be set at:

  • Domestic: Reduced rate of £8, standard rate of £16, and higher rate of £142
  • Band A: Reduced rate of £15, standard rate of £32, and higher rate of £142
  • Band B: Reduced rate of £102, standard rate of £244, and higher rate of £1,097
  • Band C: Reduced rate of £106, standard rate of £253, and higher rate of £1,141

 

Source: gov.uk 

Helen Cox, Director of Flight Operations at Travel Places, said:

“We continue to support our clients to achieve the best possible fares for their travel, and our long-standing partnerships with airline suppliers enable us to access the widest possible range of fares. But in addition to the increases in APD, there are many other factors that have impacted the cost of flying in recent years, such as fuel increases and global conflict.

“It is more important than ever for businesses to ensure they are accounting for all of these factors in future travel budgets and plan ahead as far in advance as possible, which will help to limit the impact of business travel costs.”

You can view the current APD rates on the government website here.

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