being bounced between holiday insurer and travel agent over APD fee

Tracy39

Hello, I need help, I had to cancel my package holiday earlier this year 2026, due to illness. Due to the time frame we got half a refund for myself & my Dad who were supposed to travel
together. I was granted my claim by the insurance company and received a payout, though they deducted an £90 APD fee. (air passenger duty)

I found out some information that this is a tax that the government collect from the
airline after you fly, until then it is said that you are charged this fee in your booking total confirmation. the only internet information I can find out is,that the tour operator/travel agent take this tax at booking, they then pass it to the airline who hold onto it, until you
fly, in which only when you fly is that money passed onto HMRC by the
airline. I am not expert in laws, i have not had this information from anybody legally trained in these kind of laws as that advice costs to much money.
But most sources on the internet say the same thing.So if you don't fly you can ask to claim that back from the tour operator or airline. So i went to do this, only to receive a strange response back from them as follows.

"Because your airline tickets were never issued, no APD was ever charged or paid to the airline. This means the insurance shouldnot have deducted £90 per person for APD, as it was never a real cost.Here is the supplier’s legal clarification:

“The airline tickets were never issued on this booking, so the customers
didn’t pay the airline for the APD tax. The cancellation amount of
£1,931.03 is correct for the 50% charge, and the refund issued is
correct. We would not apply for any refund from the
airline as the tickets were not issued and no payment was made to
them.”

I would recommend going back to your insurer with this information and asking them to refund the £90 per person they deducted".

I enclose this response as a screen shot, I feel this is wrong as the APD fee is a legal tax that airlines have to pass to the HMRC, in which I feel sure, they would of requested from the travel agent/tour operator, otherwise it would surely be illegal if the travel agent are holding
onto that money, as they claim they never passed that cost onto the airline at time of booking or when holiday is fully paid for.

Something doesn't feel right here and I’m being bounced back between insurance company to travel agent.  The insurance won't pay the fee because they say it isn't a unrecoverable loss, and can be claimed back through your travel agent/tour operator. But yet if there is any truth to what the travel agent has told me then where did the insurance company get the
information that I was charged and paid for this APD fee?

Help would be appreciated where i stand,as I feel this is going to get quite nasty.kind regards Miss Tracy Fletcher 

Woodstok2000

Who did you book with and What Was the total cost of your holiday? How much did the insurer pay you? Does any of the documentation from the travel agent mention APD, e.g. an invoice?