Consultation outcome

Consultation on aviation tax reform

This consultation has concluded

Download the full outcome

Consultation on aviation tax reform: summary of responses

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Detail of outcome

At Budget 2020, the government committed to consult on aviation tax reform. The government ran a consultation this year which sought views on the government’s initial policy position that the effective rate of APD on domestic flights should be reduced in order to support Union and domestic connectivity and that the number of international distance bands should be increased in order to align the tax more closely with our environmental objectives. The consultation also set out the government’s initial position on a potential Frequent Flyer Levy. The government received 280 responses and this document provides a summary of these. It also outlines the government’s response and next steps.


Original consultation

Summary

This consultation seeks views on reforms to Air Passenger Duty (APD)

This consultation ran from
to

Consultation description

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.

Documents

Aviation tax reform: consultation

Published 23 March 2021
Last updated 27 October 2021 + show all updates
  1. Added consultation outcome.

  2. First published.