MP accuses British Government of funding Isle of Man as a tax haven

A Labour MP has accused the British Government of supporting and subsidising the Isle of Man as a tax haven.

Dame Margaret Hodge wants the Government to publish details of the formula it uses to pay VAT to the Island.

Speaking in the House of Commons, the Members of Parliament for Barking opened a debate on the Paradise Papers, estimated that the Island receives around £300m per year in VAT from the UK Government.

Financial Secretary to the Treasury Mel Stride responded, insisting that the Isle of Man is responsible for its own fiscal matters, and that the Island is already conducting a review.

Dame Hodge also called on the Queen not to honour Formula 1 champion Lewis Hamilton with a knighthood after he received a VAT refund on a jet imported to the Island in 2013.