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The Independent UK
The Independent UK
Amelia Neath

Budget: Private jet passengers hit with extra tax bill as rate increases by 50 per cent

Private jet passengers in the UK will face a 50 per cent tax increase, the government announced in the autumn Budget.

The rise means that those who choose to travel this way will start paying high air passenger duty (APD) rates from 2026.

Chancellor of the Exchequer Rachel Reeves announced on Wednesday 30 October that the government will introduce an adjustment to air passenger duty, meaning an increase of no more than £2 for an economy class short-haul flight.

But the fees that fall upon those travelling in private jets will increase by 50 per cent.

The private jets that qualify for this higher rate weigh over 20 tonnes and can only carry fewer than 19 passengers.

However, now the budget has been announced, the government is seeking consultation on how to extend the scope of the higher rate to more private jets.

It also hopes that the reform of the higher rate aligns with their net-zero objectives, such as the private jet industry investing in low-carbon technologies.

The most expensive rate for private jet flyers will increase from £607 to £673 in 2025, reaching £1,141 per passenger by April 2026.

The government says evidence shows that the typical owners of these jets are usually businesses, or people with “considerable wealth”.

Rachel Reeves made the private jet APD announcement on Wednesday (AFP via Getty Images)

“Those individuals who travel in larger more luxurious private jets may see a bigger increase,” the government said.

“The additional increase to the higher rates ensures that APD costs as a proportion of the hiring costs for private jets are more in line with APD on commercial airlines as a proportion of airfares.

“The increase to the higher rate will ensure that users of private jets continue to make a fair contribution to the public finances.”

APD has applied to private jets since April 2013, with an even higher rate the larger and the more luxurious the aircraft and its service is.

The operators of many private jets are currently taxed at the reduced or standard rates of APD because their jets do not meet the definition of jets taxed with the higher rate, such as being lighter than 20 tonnes or having more seats.

APD raised £3.8 billion for the UK in 2023-24. Rates will for airline passengers will rise from 1 April 2026, adding £2 to the price of economy tickets for passengers on short-haul international flights.

Reeves mocked Conservative leader Rishi Sunak as she laid out Labour’s Budget in the House of Commons on Wednesday, 30 October.

Sunak was known to use private jets and a helicopter service during his time as prime minister, and was often criticised for it by Labour MPs, who branded him as “out of touch”.

Joking that Sunak’s “ears pricked up” at the mention of air passenger duty, Reeves said, “That is equivalent to £450 per passenger for a private jet to, say, California?”

From 1 April 2025, higher APD rates for qualifying private jets will be:

From 1 April 2026, higher APD rates will be:

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