Property developer Darren Kelly, 45, lived in Isle of Whithorn in Dumfries and Galloway.
Mr Kelly - originally thought have been from Lostock in Bolton - moved to the village several years ago and renovated property for holiday lets.
Nepalese police said the Britons were killed along with five Chinese people, as well as three passengers and four crew members from the Himalayan country.
The twin-engine propeller plane crashed shortly after take-off near Nepal's capital, Kathmandu.
The British victims were identified by local travel company Sherpa Adventures as Raymond Eagle, 58, Christopher Davey, 51, Vincent Kelly, 50, Darren Kelly, 45, Timothy Oakes, 57, Stephen Holding, 60, and Benjamin Ogden, 27.
The group, who arrived in Nepal on Wednesday and were due to begin trekking today, were travelling with Hampshire-based travel company Explore Worldwide.
Managing director Ashley Toft said: "We are devastated by this news. Our thoughts are very much with the families of those affected, both in the UK and in Nepal."
The Foreign and Commonwealth Office confirmed there were British fatalities and said it was "urgently" seeking to confirm the number and their identities.
A spokeswoman said: "I can confirm that there were British national fatalities. The embassy in Kathmandu is in contact with the Nepalese authorities and the British ambassador has already been to the hospital where we understand the bodies were taken."
The plane, belonging to Nepal's domestic airline Sita Air, was heading east towards Lukla, the gateway to Mount Everest and a popular destination for trekkers.
It crashed near the Manohara River to the south west of the city.
Witnesses say it burst into flames and came down in a field, reports said.
Weather in Kathmandu was clear at the time of the crash.
The pilot reported trouble two minutes after take-off, and Kathmandu airport official Ratish Chandra Suman said the plane appeared to have been trying to turn back to the airport.
The official could not confirm if the plane was already on fire before it crashed.
The airport's police chief, Narayan Bastakoti, said firefighters brought the blaze in the wreckage under control and police rescuers were trying to pull out the bodies.
He also confirmed that seven passengers were British and five were Chinese. The other three passengers and the four crew members were from Nepal, he said.
Thousands of Westerners head to the Himalayas every year to trek in the region around Mt Everest, the world's highest peak. Autumn is considered the best time to trek in the area.
The crash follows an avalanche on another Nepal peak on Sunday that killed seven foreign climbers and a Nepali guide.
Footage taken by witnesses using mobile phones showed the front section of the plane was on fire when it first hit the ground, and that it appeared the pilot had attempted to land the plane on open ground beside a river.
The fire quickly spread to the rear, but the tail was still in one piece at the crash site, reported to be near a slum about 500m from Kathmandu's Tribhuwan International Airport.
Villagers were unable to approach the plane because of the fire and it took some time for firefighters to reach the area and bring the blaze under control.
Soldiers and police sifted through the crash wreckage looking for bodies and documents to help identify the victims.
Bodies were taken by vans to the city's hospital morgue.
Investigators were trying to determine the cause of the crash and identify the bodies, and Mr Suman said he could not confirm if the plane was already on fire before it crashed.
Reports suggested the accident was caused by a bird strike.
The flight was one of the first to take off from Kathmandu's airport, and departed at about 6.15am local time.
Other flights reported no problems, and the airport was operating normally.
English mountaineer Alan Hinkes, who has been climbing in the Himalayas for more than 20 years, told the BBC that he had taken the flight from Kathmandu to Lukla many times previously, and that problems usually occurred at the Lukla end.
He said: "It is ironic that it has crashed in Kathmandu. You are usually worried about it happening at the other end.
"The landing strip in Lukla is a bit like an aircraft carrier with a mountain at the end of it, with a 1,000ft drop at the end of the runway. Normally crashes happen at that end."
Mr Hinkes said it was unlikely the victims would have been planning to climb Everest, but were more likely to be trekkers or people attempting other mountains in the Everest region.
He said: "There is quite good weather in October and November for climbing the mountains around Everest.
"It is a bit worrying and upsetting. There are a lot of people and friends I know who go out at this time of year leading treks.
"It is quite alarming. I have lost a few friends in plane crashes in Nepal over the last 20 years.
"It is not the safest place to fly, I must admit, but it is what you have to do to get into the mountains."
A spokeswoman for the Foreign Office said: "The British embassy can confirm that there was an air crash near Kathmandu airport earlier this morning. We can confirm that there were British national fatalities. The embassy remains in contact with the Nepalese authorities. The ambassador has already gone to Tribhuvan University Teaching Hospital."
The Foreign Office has set up a helpline for concerned relatives on 0207 008 1500.
Responding to news of the crash in Nepal during his visit to Brazil, Prime Minister David Cameron said: "It is an absolutely horrific incident and obviously I feel for the families concerned.
"We are doing everything we can to inform the next of kin. I know our ambassador in Nepal is on the case and on the spot dealing with it. Obviously we will have to find out exactly what happened.
"It is a deeply, deeply tragic case."