Finance, Taxes, Insurance
UK Plans 50% Tax Hike For Business Jet Charter Passengers
Industry concerned over possible extension of air passenger duty to more business aircraft
Business aircraft at Farnborough Airport
Passengers on private and business charter flights from UK airports such as Farnborough face increased duties in changes announced in a new government budget. © Farnborough Airport

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.