Budget : APD

[Jetscream 32]

Did I miss it or was there no mention of abolishing APD?

[Startledgrapefruit]

Did I miss it or was there no mention of abolishing APD?
Increase for long haul
Nothing for regions

[Alteagod]

Yes indeed no APD to help the regions

[kirkbymoorside]

No immediate change to APD structure but budget documents state:

A cornerstone of the government’s levelling up agenda is its commitment to regional connectivity. The aviation industry has an important role to play in connecting the nations and regions of the UK. Following the review of Air Passenger Duty (APD) that has been undertaken by HM Treasury, the government will consider the case for changing the APD treatment of domestic flights, such as reintroducing a return leg exemption, and for increasing the number of international distance bands. These considerations will form part of a consultation on aviation tax reform that will be published in spring 2020.

https://www.gov.uk/government/publications/budget-2020-documents/budget-2020 See Section 1.47

So perhaps some hope of change for Domestic travel at least?

[OneBellEnd]

More kicking of the can - a review to review the prevous review with no concrete timeline for action. The gulf between Governmental approach and the realtime workings of business.

[LGS6753]

More kicking of the can

Not an entirely fair comment. Whilst we are in the post-EU "implementation period" we continue to apply all EU regs. Those regs do not allow member countries to discriminate in their own favour - in other words countries must view all 28 members and ex-members as the same. Until Jan 1st we can not therefore view "domestic" services differently from "non-domestic".

[lfc84]

Not an entirely fair comment. Whilst we are in the post-EU "implementation period" we continue to apply all EU regs. Those regs do not allow member countries to discriminate in their own favour - in other words countries must view all 28 members and ex-members as the same. Until Jan 1st we can not therefore view "domestic" services differently from "non-domestic".
absolute garbage

[tigertanaka]

absolute garbage

Maybe you could elaborate on your view of the legal situation as I think LGS is correct.

[TartinTon]

Not an entirely fair comment. Whilst we are in the post-EU "implementation period" we continue to apply all EU regs. Those regs do not allow member countries to discriminate in their own favour - in other words countries must view all 28 members and ex-members as the same. Until Jan 1st we can not therefore view "domestic" services differently from "non-domestic".

How is that different from the Germans charging 19% VAT on domestic sectors?

[LGS6753]

There's no difference in the underlying theory. There are wide variations in rate and scope between EU member states. But it can't be levied discriminatorily - i.e. if Germany has a 19% VAT rate it is payable by all EU citizens using that service (although non-EU citizens can in theory reclaim it).

[TartinTon]

There's no difference in the underlying theory. There are wide variations in rate and scope between EU member states. But it can't be levied discriminatorily - i.e. if Germany has a 19% VAT rate it is payable by all EU citizens using that service (although non-EU citizens can in theory reclaim it).

On that basis the UK gov would be ok to drop the return APD on a roundtrip ticket as it would apply to all carriers/passengers, correct?

[LGS6753]

Tom,

No, because the only reason APD is charged "double" on a roundtrip in the UK is because both legs originate in the UK. The charge is based on where every flight originates, and how far it goes. It would, I believe, be impossible - and probably discriminatory, to discount "roundtrip" second legs as that is not the basis on which the tax is levied. (It's on every departure).