UK BUDGET: Chancellor Reeves announces rise in flight taxes

Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Air passengers will be hit by an increase in flight taxes, UK Chancellor Rachel Reeves said in her budget on Wednesday.

Reeves said air passenger duty will rise, adding up to £2 to the cost of an economy ticket for a short-haul flight.

Private jet users will be hit by a 50% hike in air passenger duty, she added.

APD rates are based on the length of the flight and the class of cabin.

For passengers travelling in economy, they are £7 for a domestic flight, £13 for a short-haul flight, and £88 to £92 for a long-haul flight.

Those in premium cabins are charged £14 for a domestic flight, £26 for a short-haul flight, and £194 to £202 for a long-haul flight.

Private jet passengers currently face an APD rate of £78 for domestic or short-haul flights, and £581 to £607 for long-haul flights.

Reeves mocked Tory leader Rishi Sunak as she joked his ‘ears have pricked up’ when she mentioned APD.

The chancellor told the Commons: ‘Air passenger duty has not kept up with inflation in recent years so we are introducing an adjustment, meaning an increase of no more than £2 for an economy class short-haul flight.

‘But I am taking a different approach when it comes to private jets, increasing the rate of air passenger duty by a further 50%.

‘That is equivalent to £450 per passenger for a private jet to, say, California.’

source: PA

Copyright 2024 Alliance News Ltd. All Rights Reserved.