Cross Border Leasing ???

[Planty]

As posted elsewhere and in response to couple of other topics., we are looking at other boats pending diesel issue and increasingly this "Cross Border Leasing" crops up in conversations.

Have had one or two try & explain how one buys the boat ex Vat, then effectively pay a % to a third party to "lease" it back annually thus minimising VAT. Can be done on new or used that are tax unpaid apparently??

Is there anyone on here that has done it, considering it and understands it or advises others on it ?? Would like informed opinion or experience if poss as might be serious consideration. Paul

 

[tcm]

hm careful;. As a brit, your boat shd be britsih registered - expect interesting questions in non-english if you skipper a luxembourg-flagged boat in spain and have a uk passport. Also expect to have to comply with flag regulations - no sailing tax under uk flag.

Start a company, buy boat, pay vat, get some charters, reclaim vat. That's how yer lorries and vans do it...

 

[jfm]

I looked at the cross border leasing stuff (Maraut sp? and others advertise it) and imho it isn't a good product. There is much faffing, flagging issues with some schemes, credit risk issues with some, and they charge a fee which is a sizeable percentage of the VAT saved, and after all that the schemes do not let you have de-tax fuel, only white diesel, doh. Not good imho. you have to be quite careful in buying any tax-based scheme/product. There are some folks who claim to be tax experts but aren't actually very good at it

But the first decision in making a choice is where you gonna keep the boat. Difrunt VAT rules for difrunt countries

 

[Deleted User YDKXO]

I think it should be get a good accountant, start a company, buy a boat, pay the VAT, reclaim a proportion of the VAT to reflect personal use, get a few charters, declare a loss with the aid of a capital allowance, set off loss against main company, pay less corporation tax, let accountant sort out benefit in kind with Revenue. Not quite how yer lorries and vans and diggers do it but same principle
Or, find a good accountant, set up offshore company, buy a boat, pay no VAT, pay charter fees to own offshore company whenever you use boat, optional charter to other peeps
Is'nt this cross border leasing biz based in Belgium. Not sure about the mechanicals but I think you end up paying about 7% of the VAT in total plus an arrangement fee which is quite hefty so only worthwile for exspensive boats

 

[Nautical]

Can be done if you use the right people. I have done it based in the Isle of Man through Ernst & Young Yachting division. There are quite a few based in the IOM as they have several vehicles through registration and offshore finance that make it easier for UK residents. Mees Pierson Yachting are also based here and do everything from mega yachts to smaller Sunseekers etc. If you want contacts PM me and I'll send you the relevant details of who to speak to.