A LOOPHOLE which allowed Formula 1 star Lewis Hamilton to avoid paying £3.3 million in VAT on his private jet is to be closed, it emerged last night.

The four-time world champion did not pay the entire VAT bill on the red £16.5m Bombardier plane which he imported from Canada via the Isle of Man in 2013, the so-called Paradise Papers revealed.

The leak of millions of documents from legal firm Appleby showed Hamilton had used a Manx scheme to rent a private jet to himself.

The racing driver’s lawyers insisted his advisers had assured him “everything is above board”.

The Herald:

UK ministers have now revealed the island’s government had approached the Exchequer for technical guidance on how to shut down the tax dodge. Government minister Lord Bates told the House of Lords: “VAT is a matter for the Isle of Man to deal with but we have said that we are aware that there is a potentially significant problem here.”

The Herald:

He added: “Her Majesty’s Treasury has been approached by the Isle of Man government and asked to provide technical advice on how to assess and close that loophole.

“We hope that will be a way of moving forward to ensure that everybody pays the taxes that are due.”