Details of the Schedule
2.Part 1 gives statutory effect to the rate reduction applied to certain flights departing from Northern Ireland for the period 1 November 2011 to 31 March 2012.
3.Paragraph 1 inserts new sections 30(4B) to (4D) into Finance Act (FA) 1994.
4.New sections 30(4B) and (4C) specifies the rate that will apply to certain 'relevant journeys' (defined in new section 30(4D) from Northern Ireland.
5.New section 30(4D) defines a 'relevant journey' as one which departs from Northern Ireland and, in the case of a journey that involves more than one flight, provides that the second or onward flight must not begin within the UK or any ”Part 1 territories” as set out in schedule 5A to FA 1994.
6.Paragraph 2 makes consequential changes.
7.Part 2 of the Schedule provides for the increase in the APD rates to be applied to each destination band.
8.Paragraph 4 amends section 30 of FA 2004. It sets out the rates for the destination bands and inserts new sections 30(4B) to (4D). These new sections provide for the new reduced rates for passengers on flights from Northern Ireland that are 'relevant journeys' as defined in new section 30(4D), with effect from 1 April 2012.
9.Paragraph 5 makes consequential changes.
10.Part 3 if the Schedule devolves direct long haul rates to Northern Ireland.
11.Paragraph 8 amends section 30 of FA 1994. It inserts new section 30(1A) to disapply rates specified in section 30(2) to 30(4A) in instances where new section 30A (Northern Ireland direct long haul rates of duty) apply. It also omits new sections 30(4B) to 30(4D), which provide for the rates for relevant flights from Northern Ireland for the period from 1 November 2011 to 31 March 2012, and provides for these changes to take effect in relation to the carriage of passengers beginning on or after the relevant day as defined by new section 30A.
12.Paragraph 9 inserts new section 30A which provides that the rates for certain flights may be set by the Northern Ireland Assembly.
13.New section 30A(1) applies the rates from the relevant day to flights where a passenger's journey begins from a place in Northern Ireland which does not end in the UK or any territory specified in Part 1 of Schedule 5A and, where there is more than one flight to that journey, the first flight is not followed by a connected flight beginning in the UK or any other territory specified in Part 1 of Schedule 5A.
14.New sections 30A(2) to (7) defines what rates are to be devolved and specifies that rates may be set to £0.
15.New sections 30A(8) to (10) apply certain current APD provisions to new section 30A. They also define the 'relevant day' to be the day appointed by Order and make consequential changes to section 42(4) and (5) of Finance Act 1994.
16.New subsection 30A(11) to (14) sets out some of the legislative detail concerning the process under which the Northern Ireland Assembly may vary the devolved rates.
17.New section 30A(15) provides that any duty relating to devolved APD paid to the Commissioners be paid into the Consolidated Fund of Northern Ireland.
18.Paragraphs 10(1) to (5) insert new section 33(2A) which provides that aircraft operators only operating routes from Northern Ireland as specified in new section 30A are not required to register under the provisions of section 33 (but instead will need to register under the provisions of new section 33A). It also makes consequential changes to reflect new section 33A.
19.Paragraph 11 inserts new section 33A which provides that the Commissioners may keep a register of aircraft operators operating routes from Northern Ireland as specified in new section 30A, and require such operators to notify to the Commissioners their liability register by a prescribed time.
20.Paragraph 12 makes consequential amendments to section 34(5) to reflect the insertion of new section 33A.
21.Paragraph 13 inserts new section 41A which provides an information sharing agreement in relation to the devolution of the rate to Northern Ireland.
22.Paragraphs 14 and 15 make consequential amendments.
23.Part 4 of the Schedule provides for the extension of APD to passengers in smaller aircraft by reducing the de minimis weight limit below which aircraft are not chargeable aircraft for APD from the current 10 tonnes to 5.7 tonnes. It also amends the definition of a chargeable passenger and provides for new rates for the carriage of chargeable passengers on certain aircraft.
24.Paragraph 17 substitutes section 28(3) to apply sections 29 and 29A for determining whether an aircraft is a chargeable aircraft for the purposes of APD.
25.Paragraph 18 amends section 29. It redefines a "chargeable aircraft” and extends the scope of APD to smaller aircraft by reducing the former 10 tonne de minimis weight limit to 5.7 tonnes. It also removes the reference to an authorised seating capacity and restricts the scope of APD to aircraft fuelled by kerosene (aviation turbine fuel) only.
26.Paragraph 19 inserts a new section 29A, which extends exceptions to APD to aircraft whose operation is related to military, police, customs, search and rescue operations, humanitarian and research and training operations. It also extends the exception to flights operated under a public service obligation.
27.Paragraph 20 inserts new sections 30(4E) to (4H).
28.New section 30(4E) provides for new rates to be applied to the carriage of chargeable passengers on certain aircraft.
29.New section 30(4F) defines these aircraft as being of an authorised take-off weight of not less than 20 tonnes, and with an authorised seating capacity of not more than 18 (excluding members of the flight crew and cabin attendants).
30.New section 30(4H) provides that an aircraft's authorised seating capacity is considered to be more than 18 (and consequently not liable to the rate set out in new section (4F)) if there is a certificate of airworthiness in effect showing this, or if the Commissioners are satisfied that the aircraft has been designed or adapted to seat more than 18 (excluding flight and cabin attendants).
31.Paragraph 21 inserts new section 30A(7A) and provides for how the rates to be devolved and detailed in new sections 30A(4) to (6) are to apply to aircraft defined in new section 30(4F) (ie aircraft with an authorised take-off weight or not less than 20 tonnes, and with an authorised seating capacity of not more than 18).
32.Paragraph 22 amends section 43(1). Previously this section placed outside the scope of APD passengers not carried for reward if the operator was not an air transport undertaking (i.e. an aircraft operator whose main business was not carrying passenger for hire or reward). The change now brings these passengers into the scope of APD, and brings the exclusions in line with those for air transport undertakings where these are restricted to flight and cabin crew. It also excludes certain passengers not carried for reward who perform specific services or duties. These specific services and duties are prescribed in regulation 12 of the Air Passenger Duty Regulations 1994. Furthermore it inserts new section 43(1A) which extends the term 'agreement for carriage' to also include informal arrangements and agreements, such as those between friends and family members.
