The measure is due to be introduced to help families by reducing the cost of flying for children travelling in economy class and was announced in the 2014 Autumn statement. The move follows the 1 May 2015 legislation, which saw under 12s exempted from APD.
Global flight search and deals specialist, Cheapflights.co.uk, comments on planned scrapping of APD for under 16s. The measure is due to be introduced to help families by reducing the cost of flying for children travelling in economy class and was announced in the 2014 Autumn statement. The move follows the 1 May 2015 legislation, which saw under 12s exempted from APD.
Phil Bloomfield, a spokesperson for Cheapflights, said: “These changes follow a long period of lobbying by the aviation industry and consumer groups alike, and redress longstanding discrepancies in the way this tax is levied. It’s good news for families who holiday abroad – for example, for those with two children aged between 12 and 16 travelling long haul to APD Band B destinations such as the Caribbean and the USA, the new legislation could represent an annual saving of £146 based on one long haul trip a year – or as much as £438 for frequent flyers who take up to three annual holidays.”
“We expect to see a significant increase in long haul flight searches as mums and dads weigh up the potential effects of the change in legislation on their future holiday plans.”
“We’d also urge those families with existing bookings to talk with the their travel agent or airline to ensure that this change in tax bands has already been factored in the price they’ve paid for their flights, as some opportunities for refunds may exist.”
Diagram 1: proposed savings on trips evoked by new exemption legislation to take effect as of 1 March 2016 based on one, two or three trips taken annually per family
|
Description |
One annual trip |
Two annual trips |
Three annual trips |
|
Cost savings for family with one 12-16 year old to Band A (less than 2,000 miles)
|
£13 |
£26 |
£39 |
|
Cost saving for family with two 12-16 year olds to Band A (less than 2,000 miles)
|
£26 |
£52 |
£78 |
|
Cost saving for family with one 12-16 year old to Band B (more than 2,000 miles)
|
£73 |
£146 |
£219 |
|
Cost saving for family with two 12 – 16 year old to Band B (more than 2,000 miles)
|
£146 |
£292 |
£438 |
Example destinations:
- Band A includes local UK destinations, along with places like France, Spain, Croatia, Turkey and the Canary Islands
Band B takes you to places like Egypt, the USA (including Hawaii), Canada, Mali, Pakistan, China, South Africa, Caribbean islands (like Barbados and Cuba), India, the Maldives, South American countries like Brazil, as well as Australia and New Zealand.
Distance is based on capital to capital distance.
A complete list of bands and related destinations is available on the HMRC website.
Comment on APD from Prestige Holidays
David Skillicorn, General Manager, Prestige Holidays, comments: “The abolition of the APD levy for children under 16 travelling on flights of over 2000 miles is a hugely positive change. It means that a family of four can save up to £146 on their holiday this summer, which is a significant amount. It makes certain long haul destinations much more attractive particularly in the light of other world events.
“For example the saving combined with the strength of the pound against the Canadian dollar and competitive airfares from Air Canada and other carriers means that 2016 is an excellent time to visit this diverse and stunning country. The money saved on APD can be used to pick up some bargains in the shops, enjoy a dinner out or visit an attraction such as the CN Tower.”
Skillicorn added: “Early booker always get the best deals so now is the time to think about next winter’s touring holiday or ski break to Canada.”
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
