Treasury written question – answered on 7th October 2008.
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To ask the Chancellor of the Exchequer what steps his Department is taking to refund pre-paid Air Passenger Duty to passengers who had booked tickets with airlines which ceased trading prior to the date of the flight.
Where an airline ceases to trade and there is no carriage of passengers, no liability to APD arises, and consequently no tax is received by HMRC.
It is therefore for the airline to decide whether or not it refunds this charge.
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