What it means for business aviation and private jet travellers following the November 2025 United Kingdom government budget announcement.

Air Passenger Duty (APD) is the UK’s long standing departure tax applied to passengers flying out of UK airports. Historically designed with commercial aviation in mind, APD is calculated per passenger and varies according to distance travelled, seat inclination and class of travel.

A higher rate also exists for certain business aircraft, yet until now, only a very small number of private jet flights have ever fallen into that top tier of taxation since a 20 tonne exemption limit applied before the tax was due, meaning only the larger business aircraft fell into APD requirements.

This is set to change significantly from April 2027, following a major policy update announced in the UK’s November 2025 budget.

After consultation, the UK government stated:

“Private jets provide a bespoke, high convenience form of travel, often used by wealthier individuals and some businesses. However, only a small number of private jets currently pay the higher rate of Air Passenger Duty (APD). Many private jet journeys do not meet the criteria for the higher rate and subsequently pay the same APD rates as commercial airline passengers. Therefore, following a consultation, the government will extend the scope of the higher rate of APD to cover all private jets above 5.7 tonnes from April 2027. Extending the scope of the higher rate ensures the tax is applied consistently and that those who can afford to fly privately make a fair contribution alongside commercial air passengers.”

Also, hidden deep in the budget documents, ‘the government will uprate all rates of Air Passenger Duty in line with RPI from 1 April 2027. These rates will be rounded to the nearest penny’. Indicating that current rates will increase from 2027 in line with inflation.

This reform appears to represent a targeted shift in how the UK intends to regulate and tax business aviation, aligning the industry with public expectations of fairness, carbon accountability and luxury travel taxation. Whilst not being an explicit ‘wealth tax’, since the largest proportion of business aviation is for business travel, it does put the UK government in line with other European nations such as France in the taxation of business aircraft and private jets and is therefore an additional business tax as much as a wealth tax.

Practical Impact on Passengers of Business and Private Aircraft

For the ultra high net worth individuals (UHNWIs) and companies who routinely use private jets and Business aircraft, APD has historically been a marginal cost, a line item dwarfed by fuel, crew salaries, aircraft maintenance and certification, insurance, and hangarage. The new regime will increase per passenger APD significantly on mid size and large aircraft categories, particularly on long haul flights.

For a business owner, colleagues, or a family of four flying London to Dubai, Delhi or New York, the total APD bill under the higher rate will rise sharply although still representing less than 1% of total journey cost. Additionally, the tax will cover flights to Europe and for entertainment for example the Monaco Grand Prix.

However, the symbolic element is more consequential: it signals an intention to align taxation of the wealthy and business with public expectations around fairness, carbon impact and luxury travel.

APD and the 5.7 Tonne Threshold: Why It Matters

The cornerstone of the new policy is the maximum take off weight (MTOW) of the aircraft.

The 5.7t threshold has been in place for many years.  The difference in 2027, is that all non scheduled aircraft of 5.7t and above will now fall under the higher rate APD, based on the distance of travel / destination.

APD applies to:

• Fixed wing aircraft with an MTOW over 5.7t (12,500 lbs).
• Aircraft fuelled by aviation turbine fuel.
• Flights departing from UK airports.

The 5.7t threshold (12,500 lbs for our American readers) is globally recognised as the dividing line between light aircraft, light helicopters, and complex turbine powered or commercial type aircraft. As a result, this change captures almost all mid size, super mid, and large cabin private jets.

From 2027 onwards, every aircraft above this weight threshold will automatically fall into the ‘higher rate’ APD band, significantly increasing the tax per passenger for UK departures.

Which Aircraft Will Be Affected? (Over 5.7 tonnes)

The vast majority of business aviation fall into this category, including:

• Super mid size and large cabin aircraft:

Gulfstream G450 / G500 / G600 / G650, Bombardier Global 5000 / 6000 / 7500, Dassault Falcon 2000 / 7X / 8X / 10X.

• Mid size jets:

Embraer Praetor 600, Citation Longitude, Challenger 300 / 350 / 650.

• Older classics:

Hawker 800/900 series, Gulfstream IV/V, Falcon 50.

These aircraft represent the bulk of private jet departures from the UK and therefore the bulk of new revenue expected from the reform.

Which Aircraft Will Not Be Affected? (Under 5.7 tonnes)

Smaller, lighter jets will continue paying standard APD rates, similar to commercial passengers depending on Passenger load.

These include:

• Very Light Jets (VLJs):

Cirrus Vision Jet, Eclipse 500/550.

• Light Jets:

Cessna Citation CJ1 / CJ2 / CJ3 / CJ4, Embraer Phenom 100 / 300, HondaJet.

• Some small turboprops:

Pilatus PC-12, Daher TBM series, King Air C90, Epic 2000, Diamond Aircraft

• Helicopters:

Most helicopters, due to their non fixed wing design, typical missions and existing exemptions, are not subject to APD.

These aircraft are widely used for short regional hops, shuttles, and owner-operated missions, where weight classes naturally fall below the threshold.

Flight Exemptions

The following flights are exempt from APD:

• Emergency flights.
• Flights operated under a public service obligation.
• Military flights.
• NATO flights operated for official purposes.
• Search and rescue flights.
• Humanitarian flights.
• Flights following a tech stop provided the passengers do not undertake any other activities while on the ground, such as shopping or business meetings.
• Circular flights that last 60 minutes or less.
• Flights from the Scottish Highlands and Islands.
• Flights to and from the Isle of Man, Jersey and Guernsey Crown Dependencies.
• Aircraft using Avgas (Piston Aircraft).

Passenger Exemptions.

The following persons are exempt from APD:

• Infants who are not allocated a separate seat before they board the aircraft.
• Children under the age of 16 (on the date of the flight) provided they travel in the lowest class of travel. This exemption does not apply to children traveling on board business aircraft unless it has seats with a seat pitch of less than 40 inches and the number of passengers exceeds the number of 40 inch plus seats.
• Flight, cabin crew and persons not carried for reward who are:
  • escorting a passenger or goods.
  • undertaking repair, maintenance, safety and security work.
  • preparing and handling food and drink.
• All these people are also exempt if they carry out their duty within 72 hours of the flight ending or who begin their return journey within 72 hours as long as the journey is either to the place where they are normally stationed or from where they normally operate.
• Passengers carried under statutory obligation (such as people refused entry to the UK or flight inspectors).
• Passengers that remain on board when picking up other passengers.
• Passengers connecting in the UK where:
  • the airport of departure of the first leg is outside of the UK.
  • the connecting time in the UK is not more than 24 hours.
  • the connected flights are shown on the same ticket.

Penalties, Reporting and Compliance

APD is operator paid and the UK imposes strict compliance requirements:

Registration

• Operators must register with HMRC before their first flight, or within 7 days of operating from the UK.
• Operators that do not have a UK address will need to appoint a UK representative.
• Registration requires a Government Gateway account.

Payment & Returns

• HMRC issues a reference number to be used for every payment and return.
• Returns are monthly or annual (if registered for annual accounting).

Penalties

Penalties can reach up to 100% of the duty owed for:

• Failing to register.
• Errors/inaccuracies
• Duty evasion.

If HMRC issues an underestimated assessment and you do not correct it, penalties of up to 30% of lost revenue can apply.

Interest, unpaid tax will apply in addition to the penalties. Making noncompliance an expensive affair.

Who Pays APD and What Counts as a Chargeable Aircraft?

• Who pays: The operator of the aircraft.
• Chargeable aircraft: Fixed wing, above 5.7 tonnes MTOW, using turbine fuel (Jet Fuel A, Jet A1).
• Exempt aircraft: Emergency, search and rescue, humanitarian, military and certain short pleasure flights under 60 minutes.

How is APD calculated?

APD is calculated based on number of passengers, destination and type of band.

Destination Bands Explained.

APD rates depend on distance from London to the destination country’s capital:

• Domestic: Within the UK.
• Band A: Less than 2,000 miles (EEA, Switzerland, Balkans, Turkey, Ukraine, parts of Russia, North Africa except Egypt).
• Band B: 2,000–5,500 miles.
• Band C: Over 5,500 miles.

Note: HMRC distances are based on statutory miles not nautical miles used in the aircraft business.

For Private Aircraft (Higher rate from 1 April 2026):

• Domestic: £142 per passenger.
• Band A (0–2,000 miles): £142.
• Band B (2,001–5,500 miles): £1,097.
• Band C (over 5,500 miles): £1,141.

Example:

Gulfstream Flight London to New York.

• Aircraft: Gulfstream G650 (over 5.7 tonnes, fewer than 19 seats → higher rate applies).
• Route: London to New York (~3,450 miles) → Band B.
• Passengers: 4.
• APD per passenger: £1,097.
• Total APD:  which will be inflated to April 1 2027 rates.

Northern Ireland note: Direct long haul flights from Northern Ireland are zero rated.

From 1 April 2027 the new rates will be:

• Domestic flight £147
• Over 5,500 miles £1,178

Representative Requirements for Non UK Based Operators.

If an operator has no UK establishment, they must appoint a representative. Martyn Fiddler, from its base at Stansted in the UK, can act as a representative:

Fiscal Representative

• Jointly and severally liable with the operator.
• Represents the operator to HMRC.

Administrative Representative

• Represents the operator but usually without assuming liability.
• Security may be required if annual APD liability exceeds £25,000:
  • 5 months of APD for monthly accounting.
  • 16 months of APD for annual accounting.

How Martyn Fiddler Can Help

Managing Air Passenger Duty (APD) can be complex especially when acting as an Administrative Representative. This role involves representing the operator to HMRC ensuring all APD obligations are met accurately and on time.

Martyn Fiddler make this process seamless. As Europe’s only fully regulated aircraft centric corporate services provider, we specialise in creating compliant corporate ownership solutions for aircraft ownership, as well as delivering expertise in trusts, VAT compliance, customs and duty. Our team ensures your APD is calculated, paid and reported correctly, giving you peace of mind and freeing you for flight, not paperwork.

Conclusion

Whilst Martyn Fiddler do not advise on air passenger duty it is important for us to keep our clients up to date on issues that may affect them.

The UK’s decision to extend the higher Air Passenger Duty (APD) rate to all private business aircraft over 5.7 tonnes is more than a tax adjustment, it’s a clear signal of changing priorities in aviation policy. This move widens the tax base, reinforces environmental and fairness objectives, and reflects growing scrutiny of luxury travel, even as the government acknowledges private aviation as a ‘high convenience’ solution.

For operators, compliance will become more complex. For high net worth travellers, the increase is noticeable but remains a small fraction of overall flight costs. Symbolically, this reform underscores a stronger regulatory stance and an inflation-linked tax regime that will continue to evolve. The successful King Airs, Pilatus planes, and helicopters will continue to be exempt from the tax, meaning demand for these aircraft will remain strong for both business and private individuals.

Importantly, the UK is not alone in tightening its aviation tax regime. The Netherlands has announced plans to impose significant levies from 1 January 2027 for airlines and from 1 January 2030 for business aircraft, with per-person rates ranging from €420 to €2,100. These proposals have already drawn opposition from the European Business Aviation Association (EBAA), which argues that such measures unfairly target business aircraft charter flights. The Dutch initiative highlights a broader European trend toward higher taxation of private aviation, suggesting that operators must prepare for a more challenging fiscal environment across multiple jurisdictions.

In the UK, aircraft operations can attract multiple layers of taxation beyond APD—including VAT on sales, Benefit in Kind tax, import duties, and corporate taxes on ownership solutions and parts. To avoid unexpected costs and compliance risks, it’s essential to obtain a holistic tax assessment before any aircraft movement or transaction.

For over 40 years Martyn Fiddler, have been the trusted experts in business aviation. With a team of 40 passionate professionals, we provide end to end solutions from acting as your agent and supplying directors for aircraft ownership companies to ensuring your APD is calculated, paid and reported correctly.

Our goal is simple: we keep you compliant, confident and focused on enjoying flying.

Contact hello@martynfiddler.com and discover why leading operators, lawyers and owners trust Martyn Fiddler for peace of mind.