UK Air Passenger Duty Will Apply To More Business Jet Users

LONDON—The British government plans to adjust the rules around its air passenger duty (APD), with higher rates now set to apply to a larger range of business jet users.

Under a budget plan unveiled Nov. 26, the British government says the higher rate of APD will apply to business jet passengers using aircraft with a maximum takeoff weight (MTOW) greater than 5.7 metric tons from April 1, 2027. Earlier rules called for the higher charge to apply to aircraft with an MTOW greater than 20 metric tons.

APD is a levy the UK has imposed for more than a decade on air passengers taking off in the country that is linked to the distance flown and class of seats. Aviation stakeholders have long lobbied against the charge that they argue disadvantages British aviation because it is not imposed elsewhere.

Until now, many private jet journeys on aircraft with an MTOW of between 5.7 and 20 metric tons did not meet the criteria for the higher rates of APD, which meant private jet passengers paid the same rates as commercial airline passengers flying economy class.

The latest adjustment, the government says, “will help ensure that private jets are taxed equally and make a fairer contribution to the public finances, relative to commercial operators.”

Lobby groups for the industry said they were disappointed by the outcome and that the police "would damage business investment into the UK and stall sustainable aviation growth."

The government, which has consulted about the change, says that the smaller aircraft segment now affected by the rule are also more sensitive to cost changes.

However, it adds that those aircraft tend to fly shorter routes that trigger a lower APD than long-distance operations. “This approach ensures proportionality and fairness within the APD framework,” it says.

The higher rate on UK domestic flights is £84 ($112) compared with £14 for the standard rate. On flights over 5,500 mi. the difference is £224 for the standard rate and £673 for the higher rate, using April 1, 2025, figures that also are going up.

The UK Office for Budget Responsibility, an independent organization that analyses public spending, says ADP will raise £4.7 billion in the 2025-26 fiscal year across commercial and business aviation.