The Chief Minister says he is confident that the Isle of Man followed UK rules and regulations when Lewis Hamilton bought his jet through the island.

His comments come after Brussels said that the UK must take action against what it claims is abusive VAT practices in the Isle of Man.

Responding in the House of Keys to a question of urgent public importance tabled by Kate Beecroft (LibVan, Douglas South), Mr Quayle said: 'I cannot say we follow the exact rules. Of course, we try and follow the exact rules.

'We closely monitor it and follow the rules. But we have invited the UK government over to ensure that we have done that and we have regular reviews.'

The EU infringement proceedings are addressed to the UK as the island’s sovereign state.

Mr Quayle said this was not a 'one-off' - and similiar letters have been sent previously to other countries where clarification is required on elements of treatment of VAT or application of EU rules.

Treasury Minister Alfred Cannan said active infringement cases are currently being undertaken against Belgium, Luxembourg, Denmark, Finland, Sweden, Austria, the UK, Germany, Ireland, Greece, Spain and others.