Tax breaks for owners of corporate jets totalled almost £100m last year, a Freedom of Information request has revealed.

It takes the total of VAT refunded on private jets imported into the EU through the Isle of Man to more than £942m since 2011-12, and is £30m more than in 2017.

In November last year, the European Commission began infringement proceedings against what it described as ’illegal’ tax breaks concerning the island’s VAT treatment of imported business jets .

The issue first hit the international headlines the previous year as part of the Paradise Papers exposé when it was claimed wealthy individuals such as Formula One driver Lewis Hamilton were using our Customs procedures to pay zero VAT on luxury planes.

The Manx government, however, insists it simply follows the same rules on VAT refunds as the UK.

But the European Commission claims the UK has not taken sufficient action against ’abusive VAT practices’ in the Isle of Man with regard to the supply and leasing of aircraft - and gave Westminster two months to respond.

Pierre Moscovici, commissioner for economic and financial affairs, taxation and customs union, said at the time: ’It’s simply not fair that some individuals and companies can get away with not paying the correct amount of VAT on products like yachts and aircraft.’

Figures released by Treasury in an FoI response show that claims relating to 68 imported jets were made from 2016-2018 and in each case a full refund was given, totalling £253,582,075.

In 2018, VAT refunds of £97,209,296 were given for 19 jets, up from the £66,699,198 in refunds given for 21 jets in 2017. In 2016, refunds were issued on 28 jets and these totalled £89,673,576.

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.

Since then, a total of 268 jets have had a full refund of VAT, with the figure totalling £942.14m.

A government spokesman said: ’The Isle of Man follows the same policy, laws and rules as the UK and the EU on VAT for the importation of aircraft.

’We look forward to receiving HM Treasury’s review which, as announced in the UK Government’s Spring Statement 2019, should be published in the near future.’