Almost £50m of VAT was refunded on corporate jets imported into the European Union via the Isle of Man last year.

Figures have been released following a Freedom of Information request to the Manx Treasury.

They reveal that a full VAT refund was issued on every one of the 19 claims made in 2019.

VAT refunds on the 19 jets totalled £49,913,734.

In October the island was cleared of wrongdoing over its VAT treatment on imported jets.

An investigation by UK Treasury found no evidence of VAT avoidance but said further compliance checks are needed.

The review was carried out following a series of allegations of VAT avoidance in late 2017 that emerged following the Paradise Papers expose, which featured in the Guardian newspaper and the BBC’s Panorama programme.

It was alleged that aircraft were being used for leisure by owners who then falsely claimed their plane was being used for business purposes in order to claim the VAT back.

When the Paradise Papers revelations were first published in 2017 much attention centred on Formula One champion Lewis Hamilton, who was accused of not paying VAT on his £16.5 million jet.

He touched down at Ronaldsway in his new jet early on January 21, 2013, and stayed just long enough to finalise the paperwork with customs and claim a £3.3m VAT refund.

Between 2011 and 2017, 100% refunds were given for 231 claims, totalling more than £790m.

The European Commission launched infringement procedures over the VAT treatment of corporate jets imported into the EU via the island.

It wrote to the UK Government, giving it two months to respond to the accusation it had not taken sufficient action over ’abusive’ practices in the Isle of Man. The Manx government insisted the island follows the same policy, rules and laws as the UK for VAT treatment of jet imports.

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 HM Treasury report found that UK and EU VAT law had been correctly implemented in the Isle of Man and allegations of widespread VAT avoidance on aircraft and yachts were not upheld.

It said the Manx Government carries out extensive and effective compliance checks during VAT registration but should implement further compliance checks in the years after registration to ensure that the right amount of VAT continues to be collected.

The work carried out by HM Treasury also highlighted the complexity in international VAT rules.

And the report noted that there may be merit in a wider review of these rules.