AEF pushes for reform of private jet taxation

3rd February, 2025

AEF recently responded to an HM Treasury consultation on reform of Air Passenger Duty (APD) for private jets. Currently, the higher rate of APD only applies to jets of 20 tonnes or more that are equipped to seat fewer than 19 passengers. Following an announcement of a 50% increase to the higher rate in the Autumn Budget, this consultation proposed to extend the scope of the higher rate to cover all private jets. 

The UK has an exceptionally large, booming private jet market. However, the majority of private jet flights have not been paying the higher rate of APD and a significant portion pay no APD at all. This undertaxation of private jets becomes more apparent when looking at private jet APD as a percentage of ticket prices, the proportion of total flights that are private versus the revenue that they bring in, and the disproportionate pollution and emissions attributable to private flights. The proposals in this consultation go some way to addressing this imbalance.

However, we believe that all private jet passengers should be paying the higher rate of APD. Ensuring that the definition of a private jet is precise and not open to interpretation is a key aspect of achieving the goals of this proposal.

We have suggested additional measures and alterations to this proposal that could better align private jet taxation with environmental objectives and the government’s wider aims for aviation taxation. Evidence of decarbonisation from within the private jet sector is limited, so there is scope for government policy to be the key driver of this in the future, with a central role for taxation. AEF’s full response to the consultation can be found here.