Chancellor of the Exchequer, Rachel Reeves, announced on Wednesday 30 October that the government will introduce an adjustment to air passenger duty (APD). 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, such as the G550 and G650, Challenger 300 or Global 6000. APD applies to passengers on all flights departing from the UK. The tax is calculated and paid by the aircraft operator, with the cost added to the charter price.
The British Business and General Aviation Association (BBGA) highlighted that the 50% increase in APD affecting charter rates of ‘large’ charter aircraft (above 20 tonnes), from 2026, adds over £1,000 per passenger on charter rates for business jet passengers flying over 2,000 miles.
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”. “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 for airline passengers will rise from 1 April 2026, adding £2 to the price of economy tickets for passengers on short-haul international flights.
From 1 April 2025, higher APD rates for qualifying private jets will be:
- Domestic: £84
- Band A (0 to 2,000 miles): £84
- Band B (2,001 to 5,500 miles): £647
- Band C (over 5,500 miles): £673
From 1 April 2026, higher APD rates will be:
- Domestic: £142
- Band A (0 to 2,000 miles): £142
- Band B (2,001 to 5,500 miles): £1,097
- Band C (over 5,500 miles): £1,141
Private Jet Operator Comments
In general, private jet executives comment that even at these higher levels, the duty would make up less than 2 per cent of the average cost of a flight, and was likely to be easily absorbed by wealthy customers.
“After analysing the Budget and understanding what this will mean for our ultra-high-net-worth individual clients, we believe that the APD increase will have very little impact,” said Toby Edwards, co-chief executive of Victor, a private jet charter company headquartered in Abu Dhabi.
A one-way Victor private jet flight from London to Kuala Lumpur cost about £190,000 for three passengers, Edwards said. The tax rates from 2026 would add £3,423 to the price of this flight on an ultra-long range aircraft such as a Bombardier Global 7500, he added.
“These relatively small price increases won’t deter our clients.”
Eymeric Segard, chief executive and founder of LunaJets, was confident the benefits of flying privately cancelled out the additional costs.
“If you’re 10 people, the tax rises are noticeable but hopefully the reason for the trip . . . will warrant the extra amount,” he said.
A LunaJets return trip to New York costs about £130,000, Segard said.
In France, the government is considering taxes of up to €3,000 per passenger on private jet flights.
Still, the industry has boomed since the coronavirus pandemic as wealthy people turned to private flights to avoid busy airport terminals and commercial flights.
There were 5.1 million private flights in 2023, 15 per cent more than in 2019, according to data from WingX.
While the industry was confident that the changes in the UK Budget would be manageable, there was more concern about a separate government consultation — also announced on Wednesday — about changing the way air passenger duty is calculated for private jets.
Proposed changes would make passengers in lighter private aircraft eligible to pay APD at higher rates. The top rates are currently charged only on private planes that weigh more than 20 tonnes.
