Nautical
Active member
means its possible to take over the lease or start a new one under certain rules, has a TVA benefit as well, hardly anything over a squilion isn't on some sort of scheme.
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- Thread starter Nautorius
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PowerYachtBlog
Well-known member
thank you Nautical...
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Deleted User YDKXO
Guest
But what does a 'lease' mean in practical terms? Is it financed by the manufacturers or finance companies? Is it a plain lease ie. a hire at the end of which the lessee does'nt own the boat or is it a kind of lease purchase or hire purchase at the end of which the owner gets to own the boat? Is there a residual value at the end of the lease and why is there a VAT advantage? Sorry to throw these questions at you
Nautical
Active member
Well there are all sorts of permutations, Ferretti do their own scheme which includes a maintaince program and a garraunteed figure at the end, you pay about 100K euro on top but everything is taken care from registration to annual servicing and management, Vat is reclaimable on the monthly lease fees. Others work with independant consultants such as those in the Isle of Man and elsewhere, again they can be set up to offset personal tax, tax free capital movement, zero corporation tax and ex vat status, really all depends on your personal circumstances and what can be tailored to suit you needs.
Most will be a straight lease purchase where you own a percentage at the end but still have a lump to make up but some of that could be offset against certain corporation tax saved from other interests, its all very complex and no two schemes are often the same. One has to be very careful though with who you use there are some fairly hairy ones around that I would not recommend. We have our own ex HM C&E bod who confuses the poo out of even me /forums/images/graemlins/confused.gif. Have to say doesn't really work unless you are talking £1m +
Most will be a straight lease purchase where you own a percentage at the end but still have a lump to make up but some of that could be offset against certain corporation tax saved from other interests, its all very complex and no two schemes are often the same. One has to be very careful though with who you use there are some fairly hairy ones around that I would not recommend. We have our own ex HM C&E bod who confuses the poo out of even me /forums/images/graemlins/confused.gif. Have to say doesn't really work unless you are talking £1m +
PowerYachtBlog
Well-known member
very good Nautical
but in Italy and France the leasing is so common that everything over 100.000 EUROS is bought with it cause of the VAT discount subject to the purchase
with Italian leasing if you have a TAX Heaven account it's very difficult to get the loan....
Ferretti Group colloborate with the biggest Bank in Italy Locat
the gurantee of 100K they included now is someting extra to what I know nothing to do with the leasing
but in Italy and France the leasing is so common that everything over 100.000 EUROS is bought with it cause of the VAT discount subject to the purchase
with Italian leasing if you have a TAX Heaven account it's very difficult to get the loan....
Ferretti Group colloborate with the biggest Bank in Italy Locat
the gurantee of 100K they included now is someting extra to what I know nothing to do with the leasing
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Deleted User YDKXO
Guest
Thanks, Trev. It begs the question why these lease schemes are'nt more popular in the UK although I do know that some peeps use some kind of Belgian leasing scheme for bigger boats?
Nickb
New member
An example for you http://www.cgmer.co.uk/loa-bateau.asp
Nick_H
Active member
The lease schemes all relate to time spent in the EU and time spent out of it. Because boats are mobile they can do both. Its not feasible to allocate the proportions for each individual boat, so the countries allowing the schemes have issued arbitrary percentages which varies by type and size of boat. You only pay VAT in proportion to the time spent in the EU.
Countries more clever and devious than our own have then worked out that if they offer a higher percentage of non - EU allocation then people from elsewhere in Europe will use their scheme, and its better to get 7% tax on 2 million euro than 20% of nothing.
Hence there is some competition, and Malta now offers the best "rates", because they have a very small population and would love to take a cut of the tax on boats purchased throughout the EU. Other countries didn't like that so Malta made a concession that the boat actually has to visit Malta at some stage. Not a problem for big med based yachts, but far from ideal for a Solent based sport cruiser.
The Italian and French schemes have no such stipulation 'cos they're bigger and less easily bullied.
MB&Y did a feature on it a while ago, but unfortunately all their worked examples are wrong and undersate the saving. There seems to be no reason why a UK buyer planning only to use their boat in the UK cannot use an Italian leasing scheme and pay VAT at about 9%.
Countries more clever and devious than our own have then worked out that if they offer a higher percentage of non - EU allocation then people from elsewhere in Europe will use their scheme, and its better to get 7% tax on 2 million euro than 20% of nothing.
Hence there is some competition, and Malta now offers the best "rates", because they have a very small population and would love to take a cut of the tax on boats purchased throughout the EU. Other countries didn't like that so Malta made a concession that the boat actually has to visit Malta at some stage. Not a problem for big med based yachts, but far from ideal for a Solent based sport cruiser.
The Italian and French schemes have no such stipulation 'cos they're bigger and less easily bullied.
MB&Y did a feature on it a while ago, but unfortunately all their worked examples are wrong and undersate the saving. There seems to be no reason why a UK buyer planning only to use their boat in the UK cannot use an Italian leasing scheme and pay VAT at about 9%.
Nautical
Active member
Cus Gordo put the mockers on a lot of it a few years ago....so what happened, everyone shifted registration and company domicile else where and gave their money to someone else! bit like the red issue, I know lots are moving bigger boats overseas so once again what was seen as closing loop holes only shifted money elsewhere and good ole UK looses out again.
IOM on the other hand has seen a huge growth in yacht registration and purchase schemes and is raking in the lolly.
IOM on the other hand has seen a huge growth in yacht registration and purchase schemes and is raking in the lolly.
Nautical
Active member
Assuming of course you fulfil certain due diligance requirements and they have the facility to nobble you in italy or france through the courts if you make off with the boat and dosh.
PowerYachtBlog
Well-known member
you right on spot Hough
Malta leasing is the most competitive for its rates but suffers on the following:
- maximum 2 year leasing scheme
- Yacht has to visit Malta some time during the leasing on
advantages
- may be less burocracy against TAX Heaven registration etc
if someone is interested he can contact me
Malta leasing is the most competitive for its rates but suffers on the following:
- maximum 2 year leasing scheme
- Yacht has to visit Malta some time during the leasing on
advantages
- may be less burocracy against TAX Heaven registration etc
if someone is interested he can contact me
D
Deleted User YDKXO
Guest
Thnx. Interesting
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Deleted User YDKXO
Guest
Ta
