Higher Taxes for Business Aviation Passengers in the UK
Last month the UK government announced revisions to the air passenger duty of more than 50%, which could affect business aircraft passengers as the cost is passed on. From 1st April 2015, aircraft weighing more than 20 metric tons with fewer than 19 seats on flights of more than 2,000 miles will race a higher rate of £426. The rate will be £78 for shorter flights, but broader changes mean that flights longer than 6,000 miles will see lower charges.
The APD changes have come as a ‘complete surprise’ to the British Business and General Aviation Association, who have requested a meeting with UK tax officials to attempt to secure amendments to the changes before they come into force next year, warning of ‘unintended consequences’. It is feared that the potential rise in fares for business passengers could damage the business aviation sector and ultimately, the ‘inward investment it brings to the UK’.