Air Passenger Duty — extension of the higher rate
Published 13 July 2026
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Who is likely to be affected
Airlines and other aircraft operators of private and business jets and their passengers.
General description of the measure
The measure will extend the scope of the higher rate of Air Passenger Duty (APD) to include all aircraft of 5.7 tonnes or more that are used as a private or business jet.
Currently, the higher rate of APD applies to aircraft of 20 tonnes equipped to carry fewer than 19 passengers. As many private and business jets do not meet these criteria, they pay the same rate that applies to scheduled services. This measure will ensure that the higher rate will apply to aircraft already within scope of APD that operate as a private or business jet.
Policy objective
The measure will ensure that private and business jets are taxed fairly and make a greater contribution to the public finances.
Background to the measure
This measure was announced at Budget 2025 and follows the consultation on the reform of APD for private jets, published in Autumn 2024. The consultation closed on 22 January 2025 and a summary of responses was published at Budget 2025.
Detailed proposal
Operative date
This measure will have effect in relation to the carriage of passengers on or after 1 April 2027.
Current law
Section:
- 30 of Finance Act 1994 (FA 94) sets out the rates of APD
- 30A provides for the Northern Ireland long haul rates of duty
- 31 sets out exemptions relating to passengers
Proposed revisions
Legislation will be introduced in Finance Bill 2026-27 to amend sections 30 and 30A FA 94 to apply the higher rate to aircraft operating as a business jet. Section 31 of FA 94 will also be amended to clarify that the exemption for child passengers does not apply to business jets.
Summary of impacts
Exchequer impact (£ million)
| 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 | 2030 to 2031 |
|---|---|---|---|---|---|
| Empty | Empty | +10 | +10 | +10 | +10 |
These figures are set out in Table 4.1 of Budget 2025 and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside Budget 2025.
Macroeconomic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
This measure will indirectly impact on individuals who travel by air on private or business jets, as they may see an increase in air fares.
This measure is not expected to impact on family formation, stability or breakdown.
This measure is expected overall to have no impact on individuals’ experience of dealing with HMRC as the measure does not change how individuals interact with HMRC.
Equalities impacts
This measure may apply to individuals regardless of their protected characteristics. HMRC does not currently hold data on the protected characteristics of individuals impacted by this measure and so cannot assess if there are any disproportionate impacts to protected groups.
Administrative impact on business including civil society organisations
This measure is expected to have a negligible administrative impact on approximately 600 airlines and aircraft operators. One-off costs include familiarisation with the changes and updating systems to include the new rates. It is not expected that there will be any continuing costs.
There is expected to be no impact on civil society organisations.
This measure is expected overall to have no impact on business’ experience of dealing with HMRC as the measure does not change how they interact with HMRC.
Operational impact (£ million) (HMRC or other)
HMRC will not incur any costs making these changes.
Other impacts
We expect this measure to have a negligible impact on the environment. Other impacts have been considered and none have been identified.
Monitoring and evaluation
This measure will be monitored through information collected from receipts and APD returns.
Further advice
If you have any questions about this change, contact Ann Little by:
- phone: 03000 586096
- email: ann.little@hmrc.gov.uk