Delivering Scotland’s air departure tax

Flights departing from airports in the Highlands and Islands to anywhere in the world (including passengers travelling via connecting flights) have been exempt from APD since 2001. The Scottish and UK governments continue to recognise the permanent disadvantage faced by the Highlands and Islands region by virtue of its geographical remoteness and sparse population.  

The Scottish Government is committed to the objective of promoting connectivity in an area that experiences disadvantages arising from clear geographic and demographic differences to the rest of the country. There therefore remains a strong case for a form of tax exemption under ADT for Highlands and Islands flights to help maintain and promote that much needed regional aviation connectivity.

The Scottish Government proposes to introduce a Highlands and Islands exemption from 1 April 2027, alongside the commencement of ADT, for:

• the carriage of passengers on domestic flights to the rest of the UK from airports in the Highlands and Islands region; and
• the carriage of passengers on direct flights to airports in the Highlands and Islands region from all Scottish airports.

Please refer to the consultation document for detail on:

• What the exemption will now apply to
• What the exemption will no longer apply to

Assisting travel and connectivity in remote regions is accepted as a legitimate equity rationale for the purpose of Subsidy Control. The proposed Highlands and Islands exemption is designed to serve that purpose and is consistent with wider Scottish Government policy and objectives in this area. Furthermore, the modifications the Scottish Government has made to the exemption in respect of international services promote equal competition and reduce the potential for distortive effects relative to the current APD exemption.