Multi-millionaire F1 champion Lewis Hamilton 'avoided' paying VAT on his £16.5m private jet, new Paradise Papers reveal

Formula 1 world champion Lewis Hamilton 'avoided' paying VAT on his £16.5million private jet, the Paradise Papers have revealed.

The 32-year-old, who won his fourth title last week, received a £3.3million refund for the Bombardier Challenger 605, which was imported into the Isle of Man.

Any private jet purchased outside the European Union is subject to 20% VAT, in order to move freely around Europe.

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

However, documents suggest that around a third of Hamilton's journeys were for private trips.

Hamilton's lawyers said there had been no illegal activity, but admitted no VAT had been paid on the plane.

The Mercedes star's social media account shows him using the plane to jet off to holidays across the globe, while he has also posed on board with his two bulldogs, Roscoe and Coco.

Rita De La Feria, professor of tax law at Leeds University, told the BBC: '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.

'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.'

The Paradise Papers dossier says cash was secretly funnelled to the Cayman Islands and Bermuda and revealed Bono, members of Donald Trump’s cabinet and businesses including Apple and Facebook also invested in tax havens.

Irish U2 star Bono, the Queen, members of Donald Trump’s cabinet and some of the world’s biggest firms including Facebook are also named among the 13.4million confidential documents.

The 32-year-old, who won his fourth title last week (pictured during the celebrations), received a £3.3million refund for the Bombardier Challenger 605, which was imported into the Isle of Man