[Conquistador]

The hypocrisy of Bono, the odious worm, can't be a surprise to any of us but some news articles are painting a picture of the Queen sitting with her calculator working out where she can save a few per cent here and there which is ridiculous, of course she hasn't had personal involvement in this. In fact I think I'm right in saying that the Duchy of Lancaster is not subject to tax anyway but has voluntarily paid capital gains tax and since the early 90s, although sometimes a pitiful amount.

As for Lewis' jet, his company (registered in BVI) bought it for just under $27m in 2012. Thanks to the leak, we know that Appleby formed a VAT-registered leasing business on the Isle of Man for Lewis. That company leased the jet from the BVI-registered company and imported it to the Isle of Man. It was then leased again to a UK jet management company that provided Lewis with a crew - and which leased it back to Lewis and his Guernsey company, BRV Limited. All these transactions are seen as 'commercial' so they are eligable for a 100% VAT refund when the jet lands in the Isle of Man. The VAT bill in this case was £3.3m, paid on Lewis' behalf by an Isle of Man accountancy firm. So when the aircraft landed, the customs official simply skipped out the terminal and stamped a VAT-paid form to be kept on board the plane. This grants the plane “full and free circulation” throughout the EU. As soon as the VAT form is stamped, the plane can fly out.

Leasing documents in the leak show that Lewis' Guernsey company, BRV Limited, expected to use the plane two-thirds of the time, with him signed up personally to use the other third. EU and UK VAT rules state that refunds should not be granted in relation to private use of aircraft – but Lewis got a full refund because of the above web of companies and transactions. Companies that simply use planes for business are entitled to a VAT refund, but private individuals are not.

Morally wrong to most of us but all legitimate. As soon as one loophole closes, a decent tax planner will find another mysterious loophole to make the most of. You have to ask yourself, if you were an ultra high earner with £millions of assets, would you do the same? I know I would.