UK Government to Expand Higher Air Passenger Duty to More Business Jet Flights

LONDON – The UK government has announced plans to significantly widen the scope of the higher rate of Air Passenger Duty (APD), a move that will see a larger number of business jet flights subject to increased taxes. This change is part of a broader effort to ensure that private aviation contributes a “fair share” towards public finances, Chancellor Rachel Reeves indicated.

Currently, the higher rate of APD applies to flights on aircraft with a maximum take-off weight of over 20 metric tons and equipped to carry fewer than 19 passengers. This has historically targeted larger, longer-range business jets.

Under the new proposals, this weight limit of 20 metric tons will be removed. This means that flights on smaller business jets, which were previously subject to lower APD rates, will now fall under the higher tax bracket if they meet the passenger capacity criteria.

Furthermore, the government will introduce a new “premium” rate of APD. This new band will specifically target flights with fewer than 19 passengers on board, regardless of the aircraft’s weight. This aims to capture a wider range of private and business aviation activity that often involves fewer passengers per flight compared to commercial air travel.

Chancellor Reeves explained that the changes are aimed at addressing the disparity in tax contributions between private jet users and commercial airline passengers, highlighting the higher environmental footprint per passenger on private flights. The government intends for these measures to ensure that the private aviation sector makes a more proportional contribution to the Exchequer.

The business aviation industry has expressed concerns about the potential impact of these tax increases on the sector’s competitiveness and its broader contribution to the UK economy. Industry representatives have argued that business aviation is a crucial tool for economic growth and that increased taxation could discourage investment and operational activity in the UK.

The changes to the Air Passenger Duty regime are scheduled to come into effect from April 1, 2026. The government is expected to provide further details on the specific rates and implementation mechanisms in due course.