Other Matters
9 October 2007 Pre-Budget Report
Aviation tax
The Government has announced that it intends from 1 November 2009 to replace Air Passenger Duty (APD) with a tax payable per plane rather than per passenger. The Government will consult with the industry on the detail of this tax.
It was also announced that amendments will be made to the current definitions to determine the class of travel for APD.
The change will remove an anomaly whereby passengers on ‘business class only’ flights
are currently liable for reduced rates of APD. The government proposes using seat pitch, more commonly eferred to as leg room, to help determine classification.
This measure will take effect for journeys on or after 1 November 2008.
Vehicle Excise Duty (VED)
The government has announced inflation only increases on motorcycle VED rates in 2008/09.
VED rates for special types of vehicles, combined transport vehicles and all vehicle categories linked to the basic goods rate will be frozen.
It announced on 1 October 2007 that VED rates for heavy goods vehicles will be frozen in 2008/09. All changes take effect for licences commencing from 1 April 2008.