Rates for new private jet tax to be announced in next Holyrood budget

Rates for a planned private jet tax for flights out of Scotland will be announced as part of the next Holyrood budget.

The Scottish Government had been consulting on plans to bring in the levy, with this part of a wider consultation on the introduction of a Scottish Air Departure Tax (ADT) to replace the existing Air Passenger Duty (APD) charge already paid by travellers.

Ministers are to bring in the private jet supplement to ADT from April 2028 – with details of the charge to be included in the 2027-28 budget when it is announced, most likely late this year.

The Scottish Government report on the consultation states the new charge is being brought forward “in line with the principle that higher rates of tax should be paid by those who choose to travel on private jets”.

Deputy First Minister Jenny Gilruth said: “A private jet tax will ensure those who contribute significantly higher emissions per person compared to commercial flights will pay more for the privilege.”Meanwhile, ministers have also confirmed ADT will remain the same as APD in 2027-28, with current charges ranging from just over £8 to just over £261 depending on where people are flying to and what class they are travelling in.

Flights from airports in the Highlands and islands to other places in Scotland will be exempt from the tax for the first time.

Meanwhile, flights from the Highlands and islands to airports in the rest of the UK will continue to be exempt from the charge.

Ms Gilruth said this approach recognises the “particular connectivity challenges faced by the people and businesses who have made the Highlands and islands their home” and will help support communities there “to thrive”.

Plans for the new tax come almost a decade after MSPs originally approved plans for ADT.

While the legislation was passed in 2017 its implementation has been delayed because of concerns that exemptions for the Highlands and islands may not comply with state aid requirements.

Ms Gilruth said the introduction of ADT is “the latest step in our mission to ensure Scotland’s devolved tax system works for every corner of the country”.

She added: “Our progressive approach to taxation helps the Scottish Government to provide the best cost-of-living support available in the UK, such as free university tuition, free prescriptions, and our plans for a £2 bus fare cap across Scotland.”

While a private jet levy is to be brought in, the Government has confirmed it has “no plans” to introduce a frequent flyer levy.

The report on the consultation said such a scheme would be “significantly more complex to administer than ADT” and “may also pose concerns around data processing, handling and privacy”.

The Government report added there could also be “compliance issues” with a frequent flyer levy “particularly with passengers who were able to travel under multiple passports, as well as for passengers travelling from airports outside of Scotland”.