HMRC U-turn on tax on returning boats

[Chris_Robb]

Whilst someone returning from several years circumnav may be deemed an expatriate, UK residents wishing to bring their boats back from EU are not.

Graham - the law as enforced over the last 30 years had a significant element of discretion for Customs. True - use retired prolonged holiday makers - are not Ex pats returning, but the law has has discretion applied to it. It is essential to get a declaration that there will be NO CHANGE in the implementation of this discretion. No discretion = shit street

 

[Chris_Robb]

Chris,

I agree with everything you say in #269/270. You only address the interests of boat owners and not the UK marine industry. HMRC's position w.r.t. to all the rules will damage UK businesses much more so than the impact on a few sailor citizens. Also it will reduce tax revenues far beyond anything they might get from returning owners. HMRC are shooting themselves in the foot and shooting the industry in the head. Here is why:

Post Brexit the UK and EU27 will have almost identical rules. While they do so a private buyer or seller of boats and related services would be advised to spend their money in the EU27. UK businesses will suffer. Do I need to explain why?

The purpose of my previous post (#268) is to point this out... even to the extent that EU27 businesses (like the marina I mention in Dublin) are taking active advantage of HMRC's decision. People are clearly buying it.

I had lunch recently with a senior Spanish customs official. He understood the issue better than me. While he was not at liberty to say exactly what the Spanish authorities might do, he was clear that they would act to help Spanish business take advantage of the situation.

The best way to solve the industry problem is to scrap multi-VATing, TI and RGR altogether. Coincidentally, this is also a better way to solve the problems faced by boat owners. WIN-WIN instead of LOSE-LOSE.

You're going to get a lot further moving HMRC's position if it damages industry AND REDUCES TAX REVENUES than if we only push the inconveniences for few sailors.

There is more than one way to skin a cat. The CA is in an excellent position (better the RYA) to make the case with 6000 members and industry relationship to reference.... and Mr Bickerstaffs' relationship with and evidence from the EC.

Do you not agree?

Andrew - it is isn't it?!
I have made no attempt to push this side of the argument, as then due to the length of the correspondence to deal with the whole area, none of it would have been read - the aim was to get the overview into one and half pages - any longer and it would be consigned to the also to be read pile.

Also - I know little of the statistics on this, so could not in all honesty put forward arguments on this.

As it is I have had feed back that my emails are being actively looked at as there have apparently been many emails flying around internally on it. So keep your fingers crossed.

 

[nortada]

Am I right in thinking that the RYA contacted HMRC seeking advice on the implications of Brexit and the fact that the UK would no longer be in the EU Customs Union

Shame these questions were ever raised in the first place. A case of, if you may not like the answer, don’t ask the question.?