Upgrade to BT Sport

To view this content you need to upgrade your subscription from BT Sport Lite to BT Sport Pack.

Click here to get BT Sport now

Hamilton avoided tax on £16.5million private jet purchase, documents suggest

It is alleged that Hamilton’s accountants and lawyers helped him set up companies through which they rented their own jets from themselves.

F1 08/11/17 08:46
Hamilton avoided tax on £16.5million private jet purchase, documents suggest

World champion Lewis Hamilton has reportedly avoided tax on his £16.5million private jet.

The BBC has reported that Paradise Papers documents show a £3.3million VAT refund was given after the aircraft was imported into the Isle of Man in 2013.

It is alleged that Hamilton’s accountants and lawyers helped him – and others – set up companies through which they rented their own jets from themselves.

Birthday weekend squad dabbing on the wing of the jet! #latergram #epic #letsdoitagain

A post shared by Lewis Hamilton (@lewishamilton) on

A spokesman for the Mercedes driver said on Monday evening that everything was “above board”.

Any private jet purchased outside the European Union is subject to 20 per cent VAT.

Under UK and EU legislation, Hamilton would have been entitled to a VAT rebate on the jet if it was to be used purely for business purposes.

Hamilton’s pictures on social media would appear to back up those claims, with photographs showing him using the plane to travel on holiday.

According to the BBC, Hamilton’s lawyers said there had been no illegal activity but admitted no VAT had been paid on the plane.

Wheels up w/ the team!! ✈️✈️✈️

A post shared by Lewis Hamilton (@lewishamilton) on

“If private usage of the jet is being disguised as business usage of the jet, then what you essentially have is a tax avoidance scheme,” Rita De La Feria, professor of tax law at Leeds University, told the BBC.

“You’re using it for your own private interests, you’re going on holidays, meeting friends. You’re supposed to pay the tax on private consumption.”

A spokesman for Hamilton told Press Association Sport: “As a global sportsman who pays tax in a large number of countries, Lewis relies upon a team of professional advisers who manage his affairs.

On to the next one ???? ✈ #Global 6000 @bombardier_jets #ambassador #SummerBreak

A post shared by Lewis Hamilton (@lewishamilton) on

“Those advisers have assured Lewis that everything is above board and the matter is now in the hands of his lawyers.”

Hamilton won his fourth world drivers’ title at the Mexico Grand Prix last month.

F1

Lewis Hamilton absent from first F1 work commitment of year

Lewis Hamilton absent from first F1 work commitment of year

Lewis Hamilton absent from first F1 work commitment of year

Lewis Hamilton absent from first F1 work commitment of year

Lewis Hamilton absent from first F1 work commitment of year

Lewis Hamilton absent from first F1 work commitment ...

Hamilton was due to appear at an event in Geneva for Swiss watchmaker IWC alongside his Merc...

Hamilton was due to appear at an event in Geneva for Swiss watchmaker IWC alongside his Mercedes team-mate Valtteri Bott...

Hamilton was due to appear at an event in Geneva for Swiss watchmaker IWC alongside his Merced...

Hamilton was due to appear at an event in Geneva for Swiss watchmaker IWC alongside his Mercedes team-mate Valtteri Bottas.

Hamilton was due to appear at an event in Geneva for Swiss watchmaker IWC alongside his Mercedes team-mate Valtteri Bottas.

Hamilton was due to appear at an event in Geneva for Swiss watchmaker IWC alongside his Mercedes team-mate Valtteri Bottas.