Changes to the return of yachts from extended cruising means no VAT payable after 3 years.

Concerto

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The HMRC rules for return of goods rule has been changed for yachts on extended cruises, so no attempt will now be made to claim VAT on return to UK waters. An owner must demonstrate that the boat has been located in the UK at some point in their ownership, RGR for boats will not be time limited.

This is provided that:
  • the person importing the boat into the UK is the person who originally exported it
  • the boat will be used in the UK for non-commercial purposes
  • the boat is substantially unmodified during its absence
UK based cruising community benefits from VAT changes - Marine Industry News

Unfortunately, the situation for owners who bought their boats VAT paid in EU and have never brought them to the UK has not yet been resolved. VAT will still be payable on the value of these boats when they are imported into the UK.
 
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