Thursday, October 31, 2024

Private jet owners face tax bill of £1,000 per flight

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However, Steve Varsano, who runs the Jet Business aircraft brokerage on Park Lane in central London, said the change was poorly thought out and could actually reduce the tax take in the longer term.

He added: “The Government calls these planes private jets, but really they are corporate aircraft that are used as capital assets, not luxury toys. They allow businesses to increase productivity and the amount of time they have in the day, which means they can make more money, employ more people and pay more in taxes.”

He said 70pc of passengers on private jets are middle managers going about their working day, and a further 20pc EW senior executives.

Among the ultra-wealthy, the increased levy may further spur an exodus of non-doms, for whom the cost is not in itself material but will add to “death by a thousand cuts”, he said.

Increases ‘will hurt UK travel industry’

Ordinary travellers face a more modest raid. The Government said that APD will increase by £1 for people taking domestic flights, by £2 for short-haul trips and by £12 for long-haul destinations, with bigger increases for premium passengers.

Ms Reeves told the Commons: “APD has not kept up with inflation in recent years, so we are introducing an adjustment. But I am taking a different approach when it comes to private jets.”

The Government will also consult on extending the higher rate of APD “to capture all passengers travelling in private jets,” and not just in the most luxurious models of more than 20 tonnes but seating fewer than 19 passengers, as is the case now.

From 2027-28, all APD bands will be increased by the rate of inflation rounded to the nearest penny.

ABTA, which represents the travel agent industry, said that even those increases would hurt the UK travel industry, with the tax on economy flights to Europe rising to £15 per person. 

Airlines UK said the rise would make it harder for British carriers to put on new routes.

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