All flights between the Highlands and Islands and other Scottish
airports will be exempt from Air Departure Tax (ADT) when the
devolved levy comes into force next year.
Deputy First Minister and Finance Secretary said extending the exemption
to incoming flights to the Highlands and Islands from other
locations in Scotland will improve national connectivity for
people and businesses when ADT replaces the UK Government's Air
Passenger Duty on 1 April 2027.
Under ADT, flights from the Highlands and Islands to airports in
the rest of the UK will remain exempt, including via connecting
flights.
Speaking as analysis of ADT consultation responses was published,
Ms Gilruth also confirmed the levy will pave the way for the
introduction of a Scottish Private Jet tax from April 2028.
The Deputy First Minister said:
This is the latest step in our mission to ensure Scotland's
devolved tax system works for every corner of the country. These
ADT exemptions recognise the particular connectivity challenges
faced by the people and businesses who have made the Highlands
and Islands their home, and will help support communities to
thrive.
Our progressive approach to taxation helps the Scottish
Government to provide the best cost of living support available
in the UK, such as free university tuition, free prescriptions
and our plans for a £2 bus fare cap across Scotland.
A private jet tax will ensure those who contribute significantly
higher emissions per person compared to commercial
flights will pay more for the privilege.
Background
'Delivering Scotland's Air
Departure Tax': consultation analysis report
As set out in January, to provide certainty and stability for
industry and taxpayers, the Scottish Government will match Air
Passenger Duty (APD) rates and bands for 2027-28.
While legislation for ADT was passed in 2017, implementation in
2018 was delayed due to concerns that replicating the existing
APD Highlands & Islands exemption may not comply with state
aid (since replaced by subsidy control) requirements.
Under ADT, flights from airports in Scotland to the Highlands and
Islands will be exempt from the tax for the first time. Flights
from airports in the Highlands and Islands to airports in the
rest of the UK will remain exempt (including via connecting
flights). International flights from airports in the Highlands
and Islands (including via connecting flights) will no longer be
exempt.
The Highlands and Islands exemption delivers on a commitment in
the National Islands Plan launched in February 2026.
Continuing work towards the introduction of a private jet tax is
part of the Scottish Government's 100 days commitments since the
new Cabinet was formed.
