Earlier this week, The Right Honourable George Osborne, Chancellor the Exchequer made his autumn statement to House of Parliament.
The Famous Budget Red Box – Image HM Government – www.gov.uk
Buried in the announcements he made, there was an important detail for those of you who have children and enjoy taking them on your travels.
- From 1st May 2015, children under 12 years old on the date of travel will be exempt from Air Passenger Duty
- From 1st March 2016, children under 16 years old on the date of travel will be exempt from Air Passenger Duty
The UK Government offers up what these savings for “an average family of four” add up to:
- £26 on a flight to Europe
- £142 on one to the US.
The government has set out expectations – with the prices changes to be clear to customers, and is to consult on making sure that the tax is displayed on ticket prices.
This could end in tears with some carriers if they actually have to work at showing off were Air Passenger Duty is in their tickets.
Earlier in the year, the UK Government announced it was to abolish the higher band Air Passenger Duty rates, switching to a two band system, with the following rates due to go in effect from 1st April 2015. The new rates look like this:
2013 2014 2015
Discounted Full Discounted Full Discounted Full
BAND A £13 £26 £13 £26 £13 £26
BAND B £67 £134 £69 £138 £71 £142
BAND C £83 £166 £85 £170 ABOLISHED
BAND D £94 £188 £97 £194 ABOLISHED
In addition, there could be another major change in Air Passenger Duty with the Scottish Government set have the powers to set its own rates of APD… which could shake up the market a fair bit – making Scotland more attractive to those departing the UK.
For those of you who are travelling from 1st May 2015 with children, it could be time to check what you’re being charged (or what you have been charged)… and moan to the airline/tour operator for a refund…
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