In a desperate bid to beat a rise in VAT, businesses and individuals spent an extra £1bn on private jets in the last three months of 2010.
Until the start of 2011, private jets were exempt from VAT.
In other words, by buying a private jet in 2010, you could save yourself £480,000 of VAT on a £2.4m Cessna plane. Or even a whopping ?9.6m on a £48m Learjet!
Data from the Office for National Statistics shows that the rise in tax led to a £2bn collapse in spending on executive jets in the first three months of this year, compared with the previous quarter.
The airline industry isn’t happy. One source told the Guardian: “By the very nature of the people who are purchasing these planes, they are mobile and don’t care where their aircraft are registered. So it’s a big loss to the UK.”
Have you ever considered buying a private jet?