International Taxes

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United Kingdom Air Passenger Duty

December 16, 2011

After a public comment period in which over 500 entities, including NBAA, submitted comments, the UK Treasury elected to delay implementation of the Air Passenger Duty (APD) on business aircraft operators until April 2013. In a joint statement, the British Business and General Aviation Association (BBGA), British Helicopter Association (BHA) and European Business Aviation Association (EBAA), explained that some of the most harmful provisions of the APD proposal have been mitigated.

While the APD impacts both commercial airlines and business aircraft, key points for NBAA Members are:

  • Aircraft below 5,700 kg (12,566 lbs) will be excluded from the APD.
  • APD charges for business aircraft will be based on the distance of the flight.
  • Business aircraft between 5,700 kg and 20,000 kg (12,566 and 44,092 lbs) will be subject to the same rates as commercial airlines instead of being subject to a special higher rate. For these aircraft, potential APD charges will range from £13 to £184 per passenger.
  • Aircraft above 20,000 kg (44,092 lbs) with less than 19 seats will pay the same APD rates, but with a multiple of two. The potential APD range will be £26 to £368 per passenger.

NBAA greatly appreciates the proactive efforts of EBAA, BBGA and BHA in their recent meetings with HM Treasury and HM Revenue & Customs to correct misunderstandings about the business aviation industry.

For more information, review the complete APD Update (430 KB, PDF).

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For More Information

NBAA Members with questions about this proposal, or other international tax issues, should contact NBAA’s Operations Service Group at info@nbaa.org.