UK Air Passenger Duty Rises 50% for Private Jets
The UK’s revised Air Passenger Duty (APD) rules, revealed on October 30, 2024, introduce increased costs for both commercial and private jet travelers. British Chancellor Rachel Reeves announced the changes within the Labour government’s 2024 Budget, aiming to adjust air travel charges as part of the country’s financial planning for the next few years.
Starting from April 26, 2026, new APD rates for passengers on commercial airlines departing the UK will be enforced. Economy passengers will see minor increases: an additional £1 ($1.30) for domestic flights, £2 ($2.60) for short-haul flights, and £12 ($15.59) for long-haul travel. Notably, passengers under 16 will remain exempt from the duty. These updated fees build upon the pricing previously set by the Conservative government, covering April 2025 to March 2026.
Addressing Parliament, Chancellor Reeves explained, “Air passenger duty has lagged behind inflation, so we are implementing a modest adjustment, adding no more than £2 for an economy short-haul flight.” The move signifies an effort to standardize APD rates amid rising costs across the aviation sector.
AirportsUK, representing over 50 British airports, voiced mixed reactions. While they appreciated additional funding commitments, including a £975 million ($1.2 billion) investment in aerospace research and an extension of the advanced fuels fund, concerns arose over the APD hike. Karen Dee, CEO of AirportsUK, emphasized, “The APD increase is disappointing, especially when airports are already investing in sustainable technologies, security advancements, and airspace modernization. If the UK aims to be the fastest-growing G7 economy, the government should recognize airports’ critical role and minimize regulatory burdens.”
A significant APD change affects private jet travelers, with a 50% increase applied to the higher APD rate, currently targeting the largest business aircraft. The existing high rate, applied to jets over 20 tons with fewer than 19 passenger seats, will now be levied on all private jet departures. This measure, as outlined by Reeves, aims to impose fairer taxation within the luxury air travel segment.
In her announcement, Reeves remarked on former Prime Minister Rishi Sunak’s private jet usage, referencing the 50% APD increase as equivalent to £450 per passenger on a private flight to California. This change seeks to close loopholes that allowed many private jet operators to pay reduced or standard APD rates due to aircraft specifications. “The higher rate,” noted the government, “is at least six times greater than the reduced rate for all distance bands, and will rise further with this Autumn Budget.”
As the UK government moves forward with consultations on APD adjustments, the new rules aim to balance revenue generation with environmental considerations, acknowledging the pivotal role that air travel plays in national and international connectivity.
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