The little-known holiday tax that has just hit a record high

Air Passenger Duty (APD) receipts reached record levels in the UK, driven by strong travel demand. HMRC collected £2 billion in APD between April and August 2026, according to the latest figures, which is £100 million more than in the same period last year. The biggest jumps came in the summer peak, with record-high receipts in both July and August. HMRC said the pattern matches continued growth in the aviation industry, as millions of Britons flew during the holiday season. APD is charged to airlines for qualifying flights departing UK airports and is typically passed through via ticket prices. For April 2026, the standard APD rate was £16 for domestic flights, £32 for destinations up to 2,000 miles, and £244–£253 for longer-distance routes, with higher rates for premium cabins. Children may be exempt under certain conditions. HMRC also reported provisional full-year 2025/26 receipts of £4.618 billion, up 12% year on year.