Britain leads the way – at least when it comes to taxing travellers

An inflation-busting increase in Air Passenger Duty is coming to hit holidaymakers in the pocket

Holidays and travel continue to offer an easy target for the Chancellor. As the fall out from the Autumn Budget ensues, most people won’t be losing too much sleep over her announcement of a 50 per cent rise in air passenger duty (APD) for those travelling on private jets. But millions of holidaymakers will also be hit by inflation-busting APD increases which will be applied to all flights and ensure that Britain remains one of the most highly taxed countries in the world for air passengers. 
The rates announced in the Budget will come into effect in April 2026 and are on top of increases already announced for April 2025. Most significant is a rise from £13 to £15 for short-haul international flights. This will be the first increase in this rate since 2012 and will affect the vast majority of leisure travellers heading for the Med or the Alps. For longer flights the rate will go up by £12 to either £102 to £106, depending on the distance. Children under 16 are exempt from APD, but a family of four with teenagers of, say, 16 and 17, who were flying to Florida or the Dominican Republic, will have to pay a total of over £400 in UK taxes when the new rates come in. Meanwhile, the rate applied to domestic flights will rise by £1 to £8 for April 2026.
These rates are all in what is termed the “reduced” banding which applies to the lowest class tickets or class of travel. If you want more legroom than this and you book a premium economy or business class seat, you will have to pay the much higher “standard” rate of APD. Two people flying to New Zealand, for example, currently have to pay a total of £404 APD. In April 2025 that will rise to £448 and then to beyond £472 (the exact figure has not yet been clarified; the Budget document only says that rises on long-haul flights will be “relatively more for premium economy and business class passengers”) from April 2026.
Meanwhile, the increase in the rate applied to private jets is swingeing, as the Chancellor pointed out gleefully to serial user Rishi Sunak. The most expensive rate will go up from £607 to £673 per passenger in April 2025 and then to just over £1,000 from April 2026. And the Government says it is also “consulting” on whether or not to extend this rate to include more private jets.
APD is a departure tax imposed on anyone on a domestic or international flight from the UK. It is not something most travellers are aware of because it is automatically added to the cost when you buy an airline ticket involving a flight departing from a UK airport. You probably won’t even notice it, because airlines are legally obliged to include it automatically in all their quoted prices. But it can make a huge proportional difference to the cost of a flight, especially if you are booking a bargain fare at the lower end of the market. For example, some £13 of a Ryanair £19.99 special offer to a European airport is paid to the Government in APD. Likewise, it makes a significant overall difference to the cost of long-haul flying. 
Rates are set according to four different bands: domestic flights, and three international rates, based on the distance from London to the capital city of the country concerned. The under 2,000-mile band includes all of the Mediterranean and the Canaries. Next up is 2001-5,500 miles, which includes, for example, Egypt, all of the US, the Caribbean, the Middle East and much of Africa. Flights of more than 5,500 miles are in the highest band; full details can be found here.
Britain is already a global leader when it comes to taxing travellers. Not only do we have probably the most complex system in the world, but we also have by far the steepest rates. The amount we are charged for flights between 2,000-5,500 miles is streets ahead of the highest rivals I have been able to find: Fiji at 140 Fijian dollars (£47) for departing passengers; Germany, €15.53 (£12) to €70.83 (£59) and Australia, 70 Australian dollars (£35.45). The latest budget has ensured that Britain maintains its unenviable record for taxing holidays and travel.