How Much do I pay in Taxes on my Holiday Flight ?

It’s an interesting question and the answer is far from simple. Much as I loathe the US practice of adding tax on after the sticker price so everything costs more than you expect, at least it is transparent. That makes it difficult to put up taxes by stealth.

Sadly the British Government has other ideas !! Back in 2005, Gordon Brown introduced Air Passenger Duty (APD) as a green tax at £5 for European flights and £20 for Long Haul flights in Economy and double for premium cabin classes. He got away with it as the APD is lost in the overall cost of your flight ticket or holiday.

So two years later he quietly doubled it and so it has gone on – APD has increased by an astonishing 140% over the past four years – more if you travel in the premium cabin classes. It’s now a very unfair, tax theoretically based on distance but in practice full of anomalies. London to Honolulu (17 hours) is taxed at £130 in a premium cabin whereas London – Cancun (11 Hours) is a whopping £162.

Next month APD goes up again – your cheeky week in Gran Canaria on easyJet will net Mr Osborne £13 but Cape Town would be £81 and if Sydney Mardi Gras appeals, prepare to form out £92 and that’s in Economy. Fancy a treat and a bit more space on a long flight, and Sydney is now costing you £184 in APD Tax.

So there it is – APD: a tax on all our dreams