- Air Passenger Duty (APD), a tax on passengers flying from most UK airports, is scheduled for significant increases from April 2025, with further rises in 2026 and 2027.
- By summer 2027, a family of four flying premium economy to Orlando could face over £1,000 in APD, following above-inflation increases imposed by Chancellor Rachel Reeves.
- Introduced in 1994 by Kenneth Clarke, APD was designed to tax aviation, which previously had no fuel tax, and is considered an easy-to-collect revenue source for the Treasury.
- The tax rate varies based on the destination category and class of travel, with higher rates for premium classes and private jets, though under-16s in basic economy are exempt.
- Travellers can potentially reduce or avoid APD by flying from specific UK regions like the Scottish Highlands and Islands, using foreign airports via terrestrial travel, or strategically planning stopovers of over 24 hours.
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