Allegations of tax avoidance involving the Isle of Man were raised in Prime Minister’s Questions today by Labour leader Jeremy Corbyn.

His questions came as the island braced itself to hear BBC’s Panorama programme outline allegations of VAT abuse relating to corporate jets imported into the EU via the Isle of Man.

These allegations, being investigated over recent months by a consortium of investigative journalists, are based on information gleaned from material obtained through a cyber attack on law firm Appleby, which has an office in Athol Street, Douglas.

During Prime Minister's Questions, the Labour leader asked Theresa May: ’In 2010 the Labour government intervened through HMRC to shut down an Isle of Man scheme used to import yachts into the European Union and thus avoid tax.

’A similar scheme has recently been exposed relating to the importation of business jets into the Isle of Man. So can the Prime Minister assure the House that HMRC investigates these new allegations diligently?

The Prime Minister replied: ’I can assure him that where cases are referred to HMRC in relation to tax avoidance they do look into those measures seriously. We have taken action collectively as a government over the last few years, since 2010, and we have secured almost £160bn in additional compliance revenues through a number of measures we have taken to ensure that we clamp down on tax evasion and avoidance.’

But Mr Corbyn said: ’957 business jets in the Isle of Man seems a bit excessive for any island, anywhere and I hope it is investigated and due tax is collected from those people who are trying to avoid it.

’Because estimates of the scale of tax dodging range from £34bn which is around the size of our schools budget, to £119bn, which is the size of the NHS budget.

’The Isle of Man VAT avoidance allegations are part of a wider leak from the Bermuda-based law firm said to be of a similar scale to the Panama Papers. Will the Prime Minister commit the HMRC to fully investigate all evidence of UK tax avoidance and evasion from this leak and prosecute where feasible?’

Mrs May replied: ’I have given the assurance that HMRC does take these issues very seriously, does investigate and where appropriate, tax loopholes are closed.

’What is important is that if we look at the record we have, we’ve announced or implemented over 75 measures since 2010 to tackle tax avoidance and evasion. Most people recognised that HMRC does rather want to collect tax. That’s its job.’

Mr Corbyn said the Panama Papers had exposed many wealthy individuals and big businesses who avoided tax through offshore trusts.

He added: ’Labour backs any necessary changes to toughen our laws against aggressive tax avoidance. Just yesterday we tried to strengthen legislation on beneficial ownership of trusts, with amendments we placed to the Finance Bill. Why did the government vote against them?’