Tax Cut Means Cheaper Family Holidays for Britons

Posted on Friday, 4 March 2016

Thousands of UK families are now able to enjoy cheaper short- and long-haul flights, thanks to a cut in Air Passenger Duty (APD) for children aged under 16, which came into effect on March 1.

It means that a family of two adults and two children taking two annual holidays more than 2,000 miles away will save up to £292. The change comes after the cut in APD for under 12s, which took place on May 1 last year.

Bookings to Florida have increased by 13 per cent over the last two years, while Caribbean trips are up 29 per cent, year-on-year. The Association of British Travel Agents (ABTA) has suggested that the cut to under-12 APD may have made these destinations more financially palatable for families.

ABTA also says that families with two children will save around £26 on flights to mainland Europe and up to £142 on long haul destinations.

High Flyers Will Still Have To Pay

However, for children flying in any other class than economy, the cut to under-16 APD will not apply.

Can I Get My APD Refunded If I've Already Booked?

The majority of holiday firms and airlines have or will refund under-16 APD on flights booked before the tax changes came into effect.

If in doubt, contact your airline or travel provider.

Financial Boost

While the government will lose a substantial amount of revenue from the cut to APD, independent analysis by PwC suggest it could provide a financial boost to the UK economy worth £16 billion.

APD had previously been the highest of its kind in Europe.

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