Travellers departing Scottish airports will be able to benefit from half price air passenger duty from 2018 when the Scottish government is set to replace the UK-wide air passenger duty scheme with its own airline ticket tax called air departure tax
In the longer term, the tax will be abolished for travellers departing from Scottish airports, ‘when finances allow’.
The Air Departure Tax (Scotland) Bill, replacing air passenger duty (APD) in Scotland, will be debated in parliament.
The plan is to reduce tax on ticket sales by 50% from April 2018 with a view to abolishing the tax completely by the end of the parliamentary session in 2021.
Until the new tax comes into force, travellers out of Scotland will have to continue to pay the rUK (rest of the UK) rates. Children under the age of 16 years on the date of the flight, and in the lowest class of travel, do not have to pay the tax.
Current APD rates from 1 April 2016 (1 April 2017)
Destination bands and distance from London (miles) | Reduced rate: (travel in lowest class of travel available on aircraft) | Standard rate: (for travel in any other class of travel) | Higher rate: (for aircraft of 20 tonnes or more equipped to carry fewer than 19 passengers) |
|---|---|---|---|
Band A (0 to 2,000 miles) | · £13 (£13) | · £26 (£26) | · £78 |
Band B (over 2,000 miles) | · £73 (£75) | · £146 (£150) | · £438 (£450) |
Source: HMRC
Revenue Scotland will be responsible for the collection and management of the tax once the existing UK regime no longer applies in Scotland.
Finance secretary Derek Mackay said: ‘This Bill is a key milestone in making sure Scotland remains an attractive destination for business and tourists alike.
‘By reducing the burden of Air Departure Tax by 50% and then entirely when finances allow, we have the potential to open up new air routes, improve our international connectivity and help Scotland access key and emerging markets, while giving due consideration to environmental issues.
‘While setting out our overall ambitions for this important new tax, we want to take this opportunity to hear the views of the parliament and of stakeholders on the detail.’
The name was changed to Air Departure Tax to reflect the general scope of the tax, which is charged on passengers departing by air from Scottish airports, and also ensures that there is no confusion with Air Passenger Duty, which will continue to operate in the rest of the UK after 1 April 2018.
Powers to replace UK APD were devolved to the Scottish Parliament under the Scotland Bill.