Air Passenger Duty (APD) UK 2026/27: What You Pay and Why
APD rates for all bands in 2026/27, who is exempt, how it affects business travel costs, and how UK air tax compares with European equivalents.
What is Air Passenger Duty?
Air Passenger Duty (APD) is an excise duty charged by the UK government on passengers departing from UK airports on commercial flights. It was introduced in 1994 and is one of the highest aviation taxes in the world. In 2026/27 it raises over £4 billion annually for the Treasury.
APD is technically a duty on the airline, not the passenger -- but airlines universally pass it on in the ticket price. You will see it broken out as a separate line item when booking a flight.
APD applies to flights from airports in England, Scotland, Wales, and Northern Ireland. It does not apply to arrivals into the UK, charter flights under certain thresholds, or private jets under 5.7 tonnes maximum take-off weight.
APD bands and rates 2026/27
The rate of APD depends on two things: the distance of the destination from London, and the class of travel.
Distance bands
HMRC assigns every country in the world to one of three distance bands based on the distance from London to the capital city of the destination country.
| Band | Distance from London | Economy / Reduced Rate | Other Classes |
|---|---|---|---|
| Band A | 0 to 2,000 miles | £16 | £26 |
| Band B | 2,001 to 5,500 miles | £88 | £216 |
| Band C | Over 5,500 miles | £92 | £220 |
Band A covers most of Europe, including France, Germany, Spain, Italy, Ireland, and Turkey. It also covers Morocco, Tunisia, and destinations in North Africa within 2,000 miles of London.
Band B covers the United States, Canada, the Caribbean, much of Africa, the Middle East, Central Asia, and South and Southeast Asia (India, Pakistan, Thailand, Singapore).
Band C covers Australia, New Zealand, Japan, China, and destinations in the Far East and Latin America beyond 5,500 miles.
Class of travel
"Economy class" (the reduced rate) applies to any seat where the seat pitch is 1.016 metres (40 inches) or less. If the smallest seat pitch in any class of the aircraft is greater than 40 inches, all passengers pay the higher rate -- this is why passengers on some business-only configured aircraft all pay the higher rate regardless of what they booked.
Worked example: annual business travel costs
Consider a business traveller who makes the following trips per year:
- 8 return trips to European cities (Band A, economy): 8 x 2 x £16 = £256
- 4 return trips to New York (Band B, economy): 4 x 2 x £88 = £704
- 2 return trips to Singapore (Band B, economy): 2 x 2 x £88 = £352
- 2 return trips to Sydney (Band C, economy): 2 x 2 x £92 = £368
Total APD per year: £1,680
If that same traveller books business class for the transatlantic and long-haul routes:
- 4 x New York business class: 4 x 2 x £216 = £1,728
- 2 x Singapore business: 2 x 2 x £216 = £864
- 2 x Sydney business: 2 x 2 x £220 = £880
- 8 x European economy: £256
Total with business class: £3,728 APD per year
For a company with 10 such travellers, APD alone on the business-class travellers comes to over £37,000 a year.
Exemptions from APD
Children under 16 in economy
Children under 16 years old travelling in the reduced-rate (economy) class are fully exempt from APD. The age is checked at the time of the flight, not when the ticket was purchased. If a child turns 16 between booking and flying, they become liable.
Children under 16 in premium economy, business class, or first class do not benefit from this exemption and pay the full higher rate.
Scottish Highlands and Islands
Passengers travelling from airports in the Highlands and Islands of Scotland benefit from significantly reduced APD rates. The designated airports include Inverness, Aberdeen (for flights to/from Highlands and Islands only), Stornoway, Sumburgh, Kirkwall, Wick, Campbeltown, Islay, and several others.
From these airports, Band A rates are reduced to £0 for economy and £13 for other classes, reflecting the importance of air connectivity for remote communities.
Connecting flights
APD is charged per leg of a journey when separate tickets are issued. However, a passenger on a through-ticket with a UK stopover of less than 24 hours (or the minimum connecting time published by the airport) is generally charged APD only on departure from the first UK airport. Airlines managing transit passengers through hubs such as Heathrow benefit from this treatment.
If you break your journey into separate ticket purchases -- for example flying London to Dublin and then Dublin to New York on two different bookings -- you pay APD on the London to Dublin leg only.
Other exemptions
- Transit passengers who do not go through UK border control are not charged APD.
- Passengers on private aircraft with a maximum take-off weight under 5.7 tonnes.
- Aircraft with fewer than 20 seats (with some conditions).
- Diplomats travelling on official business (rare).
- Flight crew are not passengers and are not charged.
Frequent flyer implications
If you accumulate frequent flyer miles or points and redeem them for flights, you still pay APD. Reward tickets are not exempt. Many airlines charge APD plus a small carrier surcharge on redemption tickets, which can make "free" flights cost £88 to £220 per person just in taxes for long-haul routes.
This is worth factoring in when comparing the true cost of reward redemptions against paid fares.
APD and business tax deductibility
For businesses, APD is an ordinary business travel expense and is fully deductible against Corporation Tax or income tax profits. There is no special restriction on claiming APD as an allowable expense. It is treated as part of the overall cost of the flight.
Employers who pay for employees' business flights (including APD) do not create a benefit in kind, provided the travel is wholly, exclusively, and necessarily for business purposes. Personal elements of a trip (e.g. a holiday extension) must be apportioned.
Environmental criticism of APD
Environmental groups have long criticised APD as too low to deter aviation emissions, despite it being the highest such tax in Europe. Critics argue that APD is a revenue measure dressed up as environmental policy -- it does not adjust for aircraft type, occupancy, or fuel efficiency.
The UK government has stated it supports the growth of sustainable aviation fuel (SAF) and the expansion of emissions trading as complementary measures. Aviation is included in the UK Emissions Trading Scheme (ETS) since the UK left the EU ETS post-Brexit.
A competing argument from the aviation industry is that APD makes UK airports less competitive than continental hubs, with passengers routing via Amsterdam, Dublin, or Paris to avoid UK departure taxes on the first leg.
APD vs comparable European aviation taxes
| Country | Tax | Short-haul equivalent |
|---|---|---|
| UK | APD | £16 (economy) |
| Germany | Air traffic tax | ~EUR 13 |
| France | Civil aviation tax | ~EUR 9.50 + solidarity levy |
| Netherlands | Aviation tax | EUR 29.40 per passenger |
| Sweden | Air passenger levy | SEK 61 to 268 |
| Ireland | Air travel tax | Suspended since 2014 |
The Netherlands has the second-highest equivalent rate in Europe, having reintroduced their aviation tax in 2023. The UK's short-haul rate is broadly mid-range, but the long-haul Band B rate of £88 has no European equivalent -- most European countries do not have differential rates by distance.
APD and the devolved nations
APD in Scotland, Wales, and Northern Ireland is technically a reserved matter (i.e. controlled by Westminster). However, the UK government has powers to devolve APD for Northern Ireland given the land border with the Republic of Ireland, where Dublin airport charges no equivalent passenger tax. Devolution of APD to Northern Ireland remains under discussion but has not occurred for the full rate.
Sources
- HMRC: Rates and allowances: Air Passenger Duty
- HMRC: Air Passenger Duty -- technical guidance
- HM Treasury: APD reform consultation 2023
Frequently asked questions
What is the Air Passenger Duty rate for a long-haul economy flight in 2026/27?
For destinations in Band B (2,001 to 5,500 miles from London), the reduced rate for economy class is £88 per passenger. Business or premium class seats attract £216.
Are children exempt from Air Passenger Duty?
Children under 16 travelling in economy class are exempt from APD. Children in premium or business class seats do pay APD regardless of age. The exemption applies at the time of check-in, not at the time of booking.
Does APD apply on connecting flights?
APD is charged on each leg of a journey where a new ticket is issued. However, if you have a genuine connecting flight booked on a single ticket and the stopover is under 24 hours (or under a minimum connection time for that airport), APD is generally charged only on the first departure from a UK airport.
What is the APD rate for a short-haul economy flight to Europe in 2026/27?
For Band A destinations within 2,000 miles of London — covering most of Europe including France, Spain, Germany, Italy, and Ireland — the APD rate for economy class is £16 per passenger in 2026/27. If you travel in business or premium class on the same route, the rate rises to £26. These figures apply per leg, so a return trip to Madrid costs £32 in APD for an economy passenger.
How is APD calculated — is it per person or per booking?
APD is charged per passenger, per flight leg departing from a UK airport. It is not a per-booking or per-ticket charge. If a family of four flies economy to New York (Band B) and back, each person pays £88 on each departing UK leg, giving a total of 4 x £88 = £352 in APD for the outbound flight alone. The return leg from New York is not subject to UK APD as it departs from a non-UK airport.
Is APD charged on flights to Australia in 2026/27?
Yes. Australia is in Band C (over 5,500 miles from London), so the APD rate is £92 per passenger in economy class and £220 in business or premium class for 2026/27. On a return flight, APD is only charged on the outbound UK departure — the return leg from Sydney to London departs from a non-UK airport and carries no UK APD. A family of four flying economy to Sydney pays £368 in APD on the outbound leg.
Do reward flights and frequent flyer redemptions attract APD?
Yes, APD is payable on reward flights and frequent flyer redemptions. There is no exemption for tickets purchased with miles or points. When you redeem miles for a long-haul flight, you will still pay APD of £88 (Band B economy) or £92 (Band C economy) plus any carrier surcharges the airline adds. This is often what makes 'free' reward flights cost £100 or more per person in unavoidable charges.
Can businesses claim APD back as a tax deduction?
Yes. APD is an allowable business expense and is fully deductible against Corporation Tax or self-employment profits. It is treated as part of the overall cost of business travel, with no specific restriction. Employers who pay for employees' business flights, including APD, do not trigger a benefit-in-kind charge provided the travel is wholly and exclusively for business purposes. Personal portions of mixed-purpose trips must be apportioned and may not be deducted.
What are the APD rates for flights from Scottish Highlands and Islands airports?
Passengers departing from designated Highlands and Islands airports — including Inverness, Stornoway, Kirkwall, Sumburgh, Wick, Campbeltown, and Islay — pay significantly reduced APD. The Band A economy rate is £0 (exempt), and the higher-class rate is £13. These reductions recognise that remote Scottish communities depend on air travel as an essential transport link rather than a discretionary option.
How does UK APD compare to aviation taxes in other European countries?
UK APD is broadly mid-range for short-haul routes at £16 for economy, comparable to Germany's air traffic tax of around EUR 13. The Netherlands charges EUR 29.40 per passenger, making it the most expensive short-haul equivalent in Europe. France levies around EUR 9.50 plus a solidarity levy, while Ireland suspended its air travel tax in 2014. The UK's long-haul Band B rate of £88 is unique — most European countries do not apply differential distance-based rates.
What happens to APD if I fly via a non-UK hub to avoid UK departure tax?
Some passengers choose to begin their journey at a non-UK airport — for example flying to Amsterdam or Dublin first, then connecting — to avoid UK APD on the long-haul leg. This is legal but carries practical costs: additional travel time, potential connection risk, and the Dutch aviation tax of EUR 29.40 per passenger at Amsterdam. HMRC charges APD based on the first point of departure in the UK, so routing via a non-UK hub on a separate ticket can reduce or eliminate UK APD liability, though it rarely saves money overall.
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