Section 19 | Changes in exemption from duty.

(1)Section 31 of the Finance Act 1994 is amended as follows.

(2)Omit subsections (1) and (2) (exemption in relation to passengers making return journeys within the United Kingdom).

(3)After subsection (4A) insert—

(4B)A passenger is not a chargeable passenger in relation to a flight if under his agreement for carriage (whether or not it is evidenced by a ticket) the flight is to depart from an airport which is in a region of the United Kingdom designated by order.

(4C)An order may be made for the purposes of subsection (4B) above in respect of any region which has a population density of not more than 12.5 persons per square kilometre.

(4D)In subsections (4B) and (4C) above, references to a region are references to an area which is determined by the Treasury to constitute a region for the purposes of those subsections.

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(4)Omit subsection (6) (provision by regulations for subsection (1) to have effect in relation to journeys begun in the Isle of Man).

(5)In consequence of the provision made by subsection (2) above, in section 43 of the Finance Act 1994 (interpretation)—

(a)in subsection (2) (meaning of “journey” etc), omit “Subject to subsection (3) below”, and

(b)omit subsection (3) (interpretation of references to a return ticket).

(6)This section applies to any carriage of a passenger on an aircraft which begins on or after 1st April 2001.