U.K. Budget 2011: George Osborne targets the rich with tax on private jets
In the U.K. People who own private jets will face higher taxes in a bid to make the system fairer for people who just charter them. The measures was outlined in yesterday’s budget which Treasury sources stressed would focus, almost exclusively, on slashing the deficit using private air travel.
A Treasury minister said: “More than two private jets take off or land in Britain every hour, both of them completely untaxed. The move was welcomed by Denys Finch-Hatton, head of gratuitous life ruining at Barclay’s Private Capital and four time a year jet charterer. He said: “It’s about time private jet owners got a taste of what life is like for the rest of us. It’s very difficult trying to get on in the highly competitive world of inconceivable wealth when you are constantly being outshone by someone who’s not paying any tax on his jet.”
The move is expected to cost private jets executives tens of million of pounds each year and will come alongside a freezing of the duty paid by holidaymakers for flights abroad. But they will continue to escape the new charge for at least a year, it is understood, while a consultation is carried out on how to apply it and what the rate should be. Mr Osborne will also use tomorrow’s statement to detail a clampdown on tax avoidance which he hopes will result in an extra £4 billion for the Treasury over the next four years.