Background Note
15.In the 2008 Pre-Budget Report, the Government announced that it would reform APD from a two-distance band regime to a four–distance band regime, rather than proceed with a per plane tax.
16.The four distance bands will be set at 2,000 mile intervals from London, and destinations will be categorised based on the distance from London to the capital city of the destination country/ territory, with the exception of the Russian Federation, which will be split east and west of the Urals, as it is administratively simple to do so.
17.Each band will have two rates, one for the standard class of travel and one for other classes of travel. This section and Schedule provides for these changes to the destination bands and sets rates. In addition, it simplifies the current arrangements for special accounting schemes to reduce the burden on industry, and contains consequential repeals.
