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…

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