Stat of the day: £2bn

The fall in spending on private jets in the first quarter of the year after the rise in VAT.

by Elizabeth Anderson
Last Updated: 09 Oct 2013

If rising prices mean you’re having to make sacrifices just to afford the weekly shop, spare a thought for the super-rich. After the government closed a loophole which allowed private jets to have a VAT rating of zero, it seems having your own private plane at your beck and call has suddenly become less viable. The poor dears.


In a rush to get their Learjets before the VAT loophole was closed at the beginning of January, spending on private planes jumped by £1bn according to ONS figures reported in the Guardian. In the three months that followed (after VAT was pushed up to 20% in January) spending fell by £2bn.


According to an industry source, Britain’s super-rich are now more likely to register their jets overseas to avoid the tax rise – presumably that’s to avoid paying through the nosecone…

Find this article useful?

Get more great articles like this in your inbox every lunchtime

How not to handle redundancies

It can come back to bite you if you get it wrong.

Sarah Willingham: I will never start another business again

The entrepreneur and investor on top leadership skills, pivotal career moments and Dragons' Den.

A new etiquette for video meetings

Virtual calls are not the same as in-person conversations, so we need to change the...

There's opportunity in this recession

A Schumpeterian view of closing businesses.

Is it okay to spy on my staff if I think they're slacking ...

Everything you wanted to know about employee surveillance but were afraid to ask.

The psychology of remote working

In depth: The lockdown has proven that we can make working from home work, but...