Consultation on aviation tax reform

The government committed to consult on aviation tax reform at Budget 2020 and, in particular, the case for amending the APD treatment of domestic flights and for increasing the number of international distance bands.

This consultation delivers on that commitment and sets out the government’s current approach to taxing the aviation sector, via APD. It then seeks views on the government’s initial policy position that in order to support Union and domestic connectivity the effective rate of APD on domestic flights should be reduced and the potential options through which this could be achieved. It also seeks views on a potential increase to the number of distance bands, in order to align the tax more closely with our environmental objectives.

Finally, the consultation sets out the factual position regarding the devolution of APD in Scotland, Wales and Northern Ireland and the government’s initial position on a potential Frequent Flyer Levy.