Budget: Private jet passengers face extra tax bill as fares rise 50%

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

This increase means those who choose to travel this way will start paying high rates of customs duties for air passengers (APD) from 2026.

Chancellor of the Exchequer Rachel Reeves announced on Wednesday 30 October that the government would introduce an adjustment to air passenger rights, which means an increase of up to £2 for a short-haul economy flight.

But fees for those traveling by private jet will increase by 50 percent.

Private jets eligible for this higher rate weigh more than 20 tonnes and can only carry fewer than 19 passengers.

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

He also hopes the higher rate reform aligns with his net-zero emissions goals, such as the private jet industry's investment in low-carbon technologies.

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

The government said evidence shows that typical owners of these planes are usually companies or individuals with “considerable wealth.”

“People traveling in larger, more luxurious private jets could see a larger increase,” the government said.

“The further increase in higher rates ensures that ODA costs as a proportion of private jet rental costs are more in line with APD on commercial airlines as a proportion of airfares.

“Increasing the higher rate will ensure that private jet users continue to make a fair contribution to the public finances.”

The APD has applied to private jets since April 2013, with a rate that is higher the larger and more luxurious the plane and its service.

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

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

Reeves mocked Tory leader Rishi Sunak as she presented the Labor budget to the House of Commons on Wednesday October 30.

Sunak was known for using private jets and a helicopter service when he was prime minister, and was often criticized for this by Labor MPs, who called him “out of touch with reality”.

Joking that Sunak’s “ears perked up” at the mention of air passenger rights, Reeves said: “That equates to £450 per passenger for a private jet to, say, California?

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

From April 1, 2026, the higher APD rates will be: