BREAKING: Lewis Hamilton Jet Out of Italy in Anger Amid Uncertain… Read more
Lewis Hamilton Jet Out of Italy in Anger Amid Uncertain… Read more
Formula 1 champion Lewis Hamilton has been linked to a controversial tax arrangement involving his £16.5 million luxury jet, according to revelations from the Paradise Papers. The documents reveal that in 2013, Hamilton secured a £3.3 million VAT refund after the jet was imported through the Isle of Man, raising concerns about whether the scheme was legal tax planning or aggressive avoidance.
The jet in question, a Bombardier Challenger 605 painted in candy-apple red, was reportedly imported under the claim of business use. However, evidence shows that Hamilton used the aircraft extensively for personal travel. Under UK and EU tax rules, VAT refunds are prohibited for aircraft intended solely for private use, although a partial refund is allowed if the jet is used for both business and personal purposes.
To claim the refund, Hamilton’s advisers created a complex leasing structure. An Isle of Man-based company, Stealth (IOM) Limited, leased the plane from Stealth Aviation Limited, a British Virgin Islands firm also linked to Hamilton. The jet was then passed to a UK-based management company that handled crew and operations, and finally leased back to Hamilton’s Guernsey company, BRV Limited. This arrangement allowed his team to argue the plane was part of a legitimate commercial leasing operation, which made the VAT refund possible.
However, documents suggest the business aspect of the arrangement may have been exaggerated. Leasing rates were suddenly increased from £2,000 to £5,500 per hour, potentially to make the Isle of Man company look profitable and commercially active rather than a shell entity designed for tax benefits.
Additional evidence, including Hamilton’s own social media posts, showed frequent personal use of the jet. Photos of vacations, flights with his dogs, and trips with then-girlfriend Nicole Scherzinger cast doubt on the claim that the aircraft was mainly used for business purposes. According to tax expert Professor Rita De La Feria of Leeds University, if private travel was falsely classified as business, the arrangement could amount to tax avoidance.
Hamilton’s legal team denies any wrongdoing. They argue that the structure was reviewed by a tax barrister, approved by Isle of Man authorities, and fully disclosed. A statement from his representatives emphasized that Hamilton, as a global athlete with income across jurisdictions, relies on professional advisers to ensure his finances are handled lawfully. They added that leasing, rather than outright purchasing, is a legitimate way to manage VAT obligations.
The revelations highlight broader concerns. The Paradise Papers show that the Isle of Man facilitated similar schemes for numerous clients, issuing over £790 million in VAT refunds for luxury jets worth a combined £1.25 billion. Critics argue that while these strategies may be legal, they raise ethical questions about wealthy individuals exploiting tax loopholes unavailable to ordinary taxpayers.
For Hamilton, this controversy adds to ongoing scrutiny over his residency in Monaco and financial arrangements. While there is no indication of illegality, the case underscores growing debates over the responsibilities of high-earning athletes and whether such offshore schemes should face stricter regulation in the future.
About The Author
