Tax exemptions to be extended on Orkney flights

Tax exemption on flights leaving Orkney will be extended to incoming passengers when the Scottish Government rolls out its new Air Departure Tax (ADT) scheme, next year.

The government confirmed the change, this Wednesday, in recognition of “particular connectivity challenges faced by the people and businesses” in the Highlands and Islands.

ADT is due to come into force on April 1, 2027, as a devolved replacement of the UK’s Air Passenger Duty (APD) scheme.

All flights between the Highlands and Islands and other Scottish airports will be exempt from ADT. Flights from the Highlands and Islands to airports in the rest of the UK will remain exempt, including via connecting flights.

Deputy First Minister and Finance Secretary Jenny Gilruth believes this extension will improve national connectivity for people and businesses.

“This is the latest step in our mission to ensure Scotland’s devolved tax system works for every corner of the country,” said Ms Gilruth, who has also confirmed plans to introduce a private jet tax in Scotland by 2028.

“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.”