Business aircraft passengers flying out of UK airports are facing rate increases for air passenger duty (APD) of between 50 and 58 percent under revisions to the tax the government announced last month.
Taxation in the United Kingdom
Online jet charter broker PrivateFly estimates that approximately half of the estimated £9.3 million in potential revenue from the recent extension of the UK’s air passenger duty (APD) tax to business jets will be lost to nonpayment in the first year. The extended tax, which became effective on April 1, applies to all flights departing from the UK.
The UK’s air passenger duty (APD) tax, which has been in effect for the airlines for several years, will officially be extended to business aircraft passengers on April 1. APD applies only to aircraft taking off from a UK airport, meaning it is a departure tax, based on the number of chargeable passengers, the distance to their destination and the “class” in which they are traveling.
The UK government has confirmed its intention to extend its existing air passenger duty (APD) to business aircraft users. Chancellor of the Exchequer George Osborne confirmed the decision in his fall economic statement in parliament on Tuesday.