HMRC valuation method for VAT paid boats returning to the UK

[crazy4557]

Can anyone help with how a boat returning from the Med to the UK after June next year will be valued for VAT purposes? We are thinking of returning our boat before June but unsure as to the valuation they will apply and how that will be based, will it be a % of the purchase invoice or possibly a similar boat for sale but I can't see the Revenue people scouring the websites to get a price for a given boat.
Thanks in advance.

 

[Sticky Fingers]

If it’s your own boat and you exported it and is uk VAT paid then I don’t think you have to pay the VAT again.

 

[crazy4557]

It was based in the EU at midnight on 31st December 2020 so is deemed to be liable to VAT again on return to the UK after the grace period ends in June 2022. Not sure how they value the boat for the VAT.

 

[Sticky Fingers]

That’s not relevant to this situation of repatriation where Returned Goods Relief applies. All that means is that if you sell it in the EU or keep it in the EU then it’s EU VAT Paid.

Where did you buy it?

 

[crazy4557]

Bought in the UK a years ago but kept in the Med since 2016. I’m thinking of bringing it back after the
RGR is closed.

 

[Momac]

An independent person like a broker can value it . Get three brokers valuations and go with the average.

 

[julians]

I found this

Notice 252: valuation of imported goods for customs purposes, VAT and trade statistics

Which states there are 6 methods for determining value of goods, you can't use method 1 as there is no transaction, so looks like method 2 is your method, the value of identical goods.

I'm no vat expert though...

 

[Jim@sea]

I once brought a boat back into the country kept it for 2 years sold it, 3 years later when the then owner had it up for sale the Customs & Revenue sent a Tax Inspector 350 miles, put him up in a hotel for 2 nights so he could call at my business to find out if I had declared the import when I brought it in.
Fortunately I had and still had the document. So it shows how important it is to keep documentation for years.

 

[simonfraser]

I once brought a boat back into the country kept it for 2 years sold it, 3 years later when the then owner had it up for sale the Customs & Revenue sent a Tax Inspector 350 miles, put him up in a hotel for 2 nights so he could call at my business to find out if I had declared the import when I brought it in.
Fortunately I had and still had the document. So it shows how important it is to keep documentation for years.

could have been done in 5mins with a fax / email

 

[Seastoke]

Why don’t you bring it back before June 2022, simples.

 

[crazy4557]

Thanks for the replies, some greatly informative

Me thinks Method 2 will work but instead I'm going to bring it back later this year, sell and buy a EU VAT paid boat out there, I can't bring myself to pay the VAT twice by leaving it there past June 2022

 

[DavidJ]

There seems to be a preference for Method 2 but how do you get the data for tax paid on similar ( old) boats imported into the UK because there haven’t been any yet (from the EU)?