Private jet passengers flying to UK face fourfold increase in tax
More than 500,000 trips will be subject to higher levies
Private jet passengers flying to the UK face a fourfold tax increase after Rachel Reeves closed a loophole that allowed non-commercial flights to reduce their levies.
Long-haul private jet travellers can expect to pay £1,141 per flight in charges from 2027, compared with just £253 under the current scheme, after the chancellor expanded the types of aircraft liable for the higher rate of Air Passenger Duty (APD).
Currently only private aircraft weighing more than 20 tonnes, or those with fewer than 19 seats, pay the higher rate. This means roughly two-thirds of private jet passengers pay only the standard rate of APD — the same as anyone flying on commercial aircraft.
From April 2027, all private jets over 5.7 tonnes will pay APD at the higher level, the chancellor announced in the Budget document on Wednesday. The move would raise roughly £10mn a year from 2027, the document stated.
About 194,000 people paid the higher rate last year, according to figures from the Treasury. It forecasts that this will rise to 532,000 under the new scheme — a more than doubling of affected journeys.
One person who uses private jets said: “I don’t think it was a bad call and I don’t think it’ll put anyone off flying private. The people who use them can afford it and it’s normally charged to businesses anyway.”
APD is split into several bands, depending on the length of the flight, with journeys within the UK facing the lowest level.
According to consultation documents from last October, the change will lead to charges for private jets flying under 2,000 miles rising from £32 to £142 per passenger in 2027.
For those flying up to 5,500 miles it rises from £244 to £1,097, and for any flying further, it climbs from £253 to £1,141 per person.
“Private jets provide a bespoke, high-convenience form of travel, often used by wealthier individuals and some businesses,” the Budget document states. “Extending the scope of the higher rate ensures the tax is applied consistently and that those who can afford to fly privately make a fair contribution alongside commercial air passengers.”
Campaigners had been calling for Reeves to equalise the tax treatment of private jet customers. However, several groups had called for even steeper charges, including higher levels of APD and for private jets to face VAT on their fuel.
Ben Plowden, head of the Campaign for Better Transport, said: “The chancellor missed a huge opportunity to go further by failing to close the aviation tax loophole which exempts aviation fuel duty and allows private jet passengers to fly VAT free.”