The UK government will impose a 50% hike to air passenger duty (APD) for most business aircraft charter flights beginning April 2026, under plans announced on Wednesday in its annual budget statement. The new Labour administration has also launched a consultation over more fundamental reforms to how the duty applies to what it categorizes as private jets in a process that will run through January 2025.
This increase would take the maximum APD per passenger to just above £1,000 ($1,300) based on the new £673 top rate that will apply from April 2025. That rate is part of a range of increases already confirmed by the previous Conservative administration, which included increases of between £1 and £12 for airline passengers.
Duty rates vary according to the class of seat booked and the distance flown with different tariffs applying to domestic UK flights, trips of up to 2,000 miles, flights over 2,000 miles, and those over 5,500 miles. From the 2027-2028 tax year, the government intends for all APD rates to increase in accordance with the UK’s retail price index measure of inflation.
The Treasury Department’s consultation will consider whether APD on private aircraft, which was first introduced in April 2013, might be extended to models not currently within the scope of the charges. Duties apply to aircraft weighing over 20 tonnes (44,000 pounds) that are equipped to seat fewer than 19 passengers. The government wants to tax all private charter flights and said it “is seeking views on how best to extend the scope of the higher rate to cover all private jets liable for APD while mitigating any unintended consequences
Business aviation advocacy group British Business and General Aviation Association expressed concern over the proposed APD increases. It also objected to Chancellor of the Exchequer Rachel Reeves characterizing all flights as “private” rather than for business purposes. The group said that once it has studied the details of the proposed budget changes, it intends to take its concerns to UK aviation minister Mike Kane in the Department for Transport.
BBGA officials indicated that their greatest concern is that the higher rate APD could be extended to smaller aircraft, including turboprop models such as King Airs. They pointed to apparent anomalies in which smaller business jets, below the current weight threshold, could be used for some longer-range international flights without incurring the highest rate of APD.
However, private flight booking platform Victor indicated that increases to APD will have “negligible" impact on its clients. In a statement issued on Thursday, the company said that 78% of its private jet charter bookings departing the UK are for flights below 2,000 miles, and fewer than 1% of these use aircraft weighing over 20 tonnes.
Victor provided some examples of typical charter bookings, pointing out that aircraft rarely depart with a full load of passengers. It said that a Cessna Citation Sovereign making a 1,715 nm flight from London to Paphos in Cyprus with three passengers on board would incur a £32 increase in APD per passenger from April 2026, representing a hike of just 0.33%.
However, an Embraer Legacy 600 flying from the UK capital to Dubai with three passengers on board would result in a 1.33% increase per passenger of £244. A Bombardier Global 7500 (weighing more than 20 tonnes) with three passengers flying from London to Kuala Lumpur would incur a 1.8% increase, with the APD rising by as much as £1,141 per passenger.
Victor praised the UK government for its announced investment in green hydrogen and carbon capture technology. It said these advances are needed to support increased production of so-called eSAF sustainable aviation fuel.
From April 1, 2025, APD payable on economy class airline bookings will range from £7 for domestic flights to £94 for long-haul flights of more than 5,500 miles. Business class seats will be charged between £14 and £224, while private jet passengers will pay between £84 and £673. Aircraft operators are responsible for collecting the duty.