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Air passenger duty abolished for children under 12 | Air passenger duty abolished for children under 12 |
(about 1 hour later) | |
Air passenger duty (APD) for children under the age of 12 on economy travel will be abolished from May 2015, Chancellor George Osborne has said in his Autumn Statement. | Air passenger duty (APD) for children under the age of 12 on economy travel will be abolished from May 2015, Chancellor George Osborne has said in his Autumn Statement. |
From the following year, APD for children under 16 will also be abolished, he said. | From the following year, APD for children under 16 will also be abolished, he said. |
Critics said the move inflicted "a fatal blow" to the tax. | Critics said the move inflicted "a fatal blow" to the tax. |
The measure follows an announcement in the Budget in March to scrap two APD tax bands. | The measure follows an announcement in the Budget in March to scrap two APD tax bands. |
Air passenger duty is charged on all passenger flights from UK airports. The rate of tax varies according to where the passenger is going, and the class of travel. | Air passenger duty is charged on all passenger flights from UK airports. The rate of tax varies according to where the passenger is going, and the class of travel. |
"This will save a family of four £26 on a flight to Europe, and £142 on one to the US," the Treasury tweeted. | "This will save a family of four £26 on a flight to Europe, and £142 on one to the US," the Treasury tweeted. |
The move will cost the Treasury £40m in 2015-16. The cost will jump to £80m the following year, and rise to £95m in 2019-20. | |
'Early stocking filler' | 'Early stocking filler' |
Easyjet said that it would "proactively refund" passengers who have already bought tickets to fly after April 2015. | Easyjet said that it would "proactively refund" passengers who have already bought tickets to fly after April 2015. |
The British Air Transport Association (BATA) said the government move was "an early stocking filler for families", but it "presents significant practical difficulties" for airlines. | The British Air Transport Association (BATA) said the government move was "an early stocking filler for families", but it "presents significant practical difficulties" for airlines. |
"The industry has always said that changes to APD should have at least a 12-month lead in time due to advance bookings," said BATA chief executive Nathan Stower. | "The industry has always said that changes to APD should have at least a 12-month lead in time due to advance bookings," said BATA chief executive Nathan Stower. |
Mr Stower noted proposals to devolve APD powers to Scotland, and called for the tax to be put "out of its misery". | Mr Stower noted proposals to devolve APD powers to Scotland, and called for the tax to be put "out of its misery". |
Mark Littlewood, director general at the Institute of Economic Affairs, said the move "not only increases tax complexity, but inflicts a fatal blow to the justification for the tax existing at all". | Mark Littlewood, director general at the Institute of Economic Affairs, said the move "not only increases tax complexity, but inflicts a fatal blow to the justification for the tax existing at all". |
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