The UK Treasury is will set out its ’next steps in due course’ over its review of the island’s VAT procedures on corporate jet imports.

The island became the centre of international media attention almost a year ago following allegations made as part of the Paradise Papers exposé.

Claims focused on the VAT treatment of business jets imported into the EU through the Isle of Man with allegations that wealthy individuals were using our Customs procedures to pay zero VAT on luxury planes.

The report was due to be published in the spring but has still yet to be signed off by Westminster.

A Treasury spokesman told the Manx Independent: ’HM Treasury and HM Revenue and Customs officials are continuing to work with Isle of Man Customs and Excise on the review of their VAT procedures for the importation of aircraft and yachts.

’We will set out our next steps in due course.’

At a press conference last year, the Chief Minister announced that UK Treasury had been invited to assess the practice for aircraft importation, with focus on the VAT treatment of leasing arrangements.

Howard Quayle said a review by our own Customs and Excise team had found no evidence of wrong-doing or mistaken refunding of VAT.

Figures released by the Manx Treasury following a Freedom of Information request showed almost £800m in VAT has been refunded since 2011 on corporate jets imported into the EU via the island.

Up until 2011, corporate jets over 8,000kg were zero-rated for VAT but then became VAT-able - but you could claim it all back if you used the aircraft for your business.

The Manx government insisted the island follows the same policy, rules and laws as the UK for VAT treatment of jet imports.