UK Chancellor Rachel Reeves has announced planned increases to Air Passenger Duty (APD) in the Autumn Budget. Citing the need to adjust for inflation and address the relative under-taxation of private jets, she said the changes will take effect in 2026-27.
Reeves said that current APD rates have not kept pace with inflation, and the changes ensure that the tax reflects the environmental impact of air travel and contributes to broader revenue generation.
Key changes:
Economy Class:
- Short-haul flights: Increase of £2 per passenger.
- Domestic flights: Increase of £1 per passenger.
- Long-haul flights: Increase of £12 per passenger.
Premium Cabins:
- Premium economy and business class passengers will face “relatively” larger increases proportionate to their ticket costs.
Private Jets:
- The higher rate for larger private jets will increase by 50%.
- The government will consult on extending this higher rate to all private jets.
From 2027-28 onwards, all APD rates will be adjusted annually in line with the Retail Prices Index (RPI) and rounded to the nearest penny.
Passengers using private jets such as the Gulfstream IV face a 50% APD hike.
