The CIOT has urged the Scottish government to keep its version of air passenger duty similar to that in the rest of the UK, when APD is devolved in 2018. The CIOT is concerned that the two governments may adopt different approaches to connected flights, which could lead to double taxation.
Under current rules, APD is charged on a flight from the UK to a foreign hub, such as Paris or Amsterdam, but any onward flight can be treated as not connected and therefore not subject to APD. However, the Scottish government could choose to treat the whole of a long-haul flight from, say, Edinburgh, via London Heathrow, as connected and charge APD on the whole journey. The UK might also charge APD on the leg from Heathrow to the final destination.
John Cullinane, CIOT tax policy director, urges the UK and Scottish governments to work together on connected flights ‘to avoid travellers facing double taxation and the risk that this extra cost will eventually be added on to the cost of flights by the industry’. The CIOT notes that APD raised more than £300m for Scotland in the last financial year.
The CIOT has urged the Scottish government to keep its version of air passenger duty similar to that in the rest of the UK, when APD is devolved in 2018. The CIOT is concerned that the two governments may adopt different approaches to connected flights, which could lead to double taxation.
Under current rules, APD is charged on a flight from the UK to a foreign hub, such as Paris or Amsterdam, but any onward flight can be treated as not connected and therefore not subject to APD. However, the Scottish government could choose to treat the whole of a long-haul flight from, say, Edinburgh, via London Heathrow, as connected and charge APD on the whole journey. The UK might also charge APD on the leg from Heathrow to the final destination.
John Cullinane, CIOT tax policy director, urges the UK and Scottish governments to work together on connected flights ‘to avoid travellers facing double taxation and the risk that this extra cost will eventually be added on to the cost of flights by the industry’. The CIOT notes that APD raised more than £300m for Scotland in the last financial year.
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")