Company owned boats

seastoke said:
Russ , I am trying to work out, a guy is willing to sell a boat less than what he allowed in part ex , then spend money on it. Does not add up
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Depends on the profit on the first boat.

Px is just a cost to change so the only figure that matters is the difference paid and if acceptable to the punter. Car trade does it all the time and the way the numbers are constructed can help vat which ( on cars) does not usually allow recovery on the repair cost under the margin scheme.
 
I want to trust this guy. I have friends asking around and they've heard he's trustworthy but you never really know. He is an MD in the marine industry which many would have come across but I don't want to give too much away for his sake and mine.

I'm meeting with him Tuesday, can you suggest any other checks on the paperwork? I have copies of all BoS's up to previous owner. A few service histories, original purchase invoice with vat paid, builders certificate, British Registry expired 2015.

FYI. Had a quote from a major broker at £2000.
 
russ said:
I want to trust this guy. I have friends asking around and they've heard he's trustworthy but you never really know. He is an MD in the marine industry which many would have come across but I don't want to give too much away for his sake and mine.

I'm meeting with him Tuesday, can you suggest any other checks on the paperwork? I have copies of all BoS's up to previous owner. A few service histories, original purchase invoice with vat paid, builders certificate, British Registry expired 2015.

FYI. Had a quote from a major broker at £2000.
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As you are rightly being extra cautious
Have you seen the original Bill of Sale from previous owner to the now current owner as it is normal for for a finance house to hold this as security If a loan of over £25k has been made and the vessel is not part 1 registered.
That was the procedure until 3 years ago assume it is still current.
It maybe advisable to use a good broker.
I know of instances when copies of docs handed to customers when the originals are still with FH.
 
I think the issue here is we all only know half the story so give answers based on what is known then more comes out.

Registry expired ( which is fine ) so hence not registered in his name. Also a sign that it is not on finance.

No idea of the boat value but given he bought it vat paid then unless he is selling for a profit ( stated he is not ) there are no vat issues.

It just needs paying for with a bill of sale back from the company seller.

A call to the prior owner ( who will be shown in the title history and be found on Facebook or linked in ) should confirm it was taken in px and in order.
 
russ said:
I'm meeting with him Tuesday, can you suggest any other checks on the paperwork? I have copies of all BoS's up to previous owner. A few service histories, original purchase invoice with vat paid, builders certificate, British Registry expired 2015.
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How do you know that? In my paperwork I have en expired Part 1 Certificate and one that's in force. Have you checked with the MCA?
 
russ said:
I've emailed a few brokers for quotes, so just waiting for more replies.
Anyone had dealings with New Boat International?
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No but I know of Vince Coda whose business it is. He owns Permateak, bought a boat name from me a couple of years ago, owns a T52 and is a frequent poster on the Fairline Facebook groups. I've no reason to think he's dodgy in any way.
 
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russ said:
I've emailed a few brokers for quotes, so just waiting for more replies.
Anyone had dealings with New Boat International?
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New boat international appear to be working out of an office at Bournemouth airport. This, the fact that they have only two boats for sale and the fact I have never heard of them, would make me a little wary.
 
stelican said:
I believe I am correct in saying all new boats within the EEC with a few exceptions must be invoiced including VAT apart from a few places such as The Channel Isles . But if bought new by a VAT registered company the Vat can be reclaimed.
So you would need to know that the first owner did not reclaim the VAT. If so that liability could exist.
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This is totally wrong. Buyer never has liability for vat in this circumstance. Buyer’s only liability is his contractual obligation to pay to seller the price stipulated in the purchase contract. Buyer won’t be paying anything to HMRC. If seller is VAT registered and is accounting to HMRC for vat on the money he receives, that’s seller’s obligation. Buyer should get a contractual right to a vat invoice but that’s all about getting a piece of paper and nothing to do with buyer having to pay money to HMRC.
 
jfm said:
This is totally wrong. Buyer never has liability for vat in this circumstance. Buyer’s only liability is his contractual obligation to pay to seller the price stipulated in the purchase contract. Buyer won’t be paying anything to HMRC. If seller is VAT registered and is accounting to HMRC for vat on the money he receives, that’s seller’s obligation. Buyer should get a contractual right to a vat invoice but that’s all about getting a piece of paper and nothing to do with buyer having to pay money to HMRC.
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Now when I re read my post I see my mistake in the last line it should read: So you would need to know that the first owner who reclaimed the VAT has invoiced you showing the VAT content and the invoice should show his VAT reg no.

When the company sell the boat they raise an invoice that shows the vat content which they pay to HMRC.
So who is liable if the company does not show the VAT content on the sales invoice and the purchaser gets stopped by customs in Med, Likely that the boat would get impounded?
Just saying it can get messy if you don't have correct paperwork to show the customs launch but of course OP is in UK
 
stelican said:
Now when I re read my post I see my mistake in the last line it should read: So you would need to know that the first owner who reclaimed the VAT has invoiced you showing the VAT content and the invoice should show his VAT reg no.
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You would not need this. Of course it is nice, and highly recommended, for buyer to get a vat invoice in this situation, but if not buyer still doesn't owe the VAT money to HMRC.

When you buy a sofa for £1200 on the high street you don't have a care in the world about whether the sofa shop gives the £200 VAT to HMRC or runs off with it. HMRC will/can never come after you for that £200 (or £200,000; the amount is irrelevant)

stelican said:
When the company sell the boat they raise an invoice that shows the vat content which they pay to HMRC.
So who is liable if the company does not show the VAT content on the sales invoice and the purchaser gets stopped by customs in Med, Likely that the boat would get impounded?
Just saying it can get messy if you don't have correct paperwork to show the customs launch but of course OP is in UK
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Ther seller is liable, not the buyer. I agree it gets messy, so get the correct paperwork, but you were not "just" saying it gets messy - you were saying the buyer might be liable to pay the VAT, which is what I am correcting
 
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Yes I would agree with your first paragraph.
But if Johnny French Customs pulls you up wishing to see the boat's documents and you cannot show a VAT paid trail which should include the original VAT paid invoice and the subsequent VAT paid invoice to you they will consider the VAT can be claimed. I think!
 
stelican said:
Yes I would agree with your first paragraph.
But if Johnny French Customs pulls you up wishing to see the boat's documents and you cannot show a VAT paid trail which should include the original VAT paid invoice and the subsequent VAT paid invoice to you they will consider the VAT can be claimed. I think!
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If you were importing the boat to France that might be the case, but as a UK resident using your UK boat on a trip to France, the VAT isn't theirs to claim.

If you were importing it I don't know what documentation you would need - i.e. if you do need the original VAT invoice?
 
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