How old for VAT exemption?

[firstascent2002]

I'm putting in an offer on a 1977 boat. The boat does not have proof of VAT payment. Is it old enough to be exempt? If not what is the significance to me?

Thanks

J

 

[Norman_E]

Yes it is old enough. (common topic, definitely one for an FAQ section)

 

[abbott013]

try this link to hm customs, its got everything you need to know. http://customs.hmrc.gov.uk/channelsPorta...t&columns=1

 

[Malish]

Only exempt with the correct paperwork. Has to pre-date our entry into the EU (1973 as I recall) to avoid VAT.

 

[jwilson]

To be properly VAT-exempt she would have to have been built and fisrt sold before 1st April 1973, so she is not VAT exempt.

She may however be "deemed VAT paid" if you can prove that she is pre-1985 AND (and the AND is important) was in EEC waters at midnight on the last day of 1992. This was an ''amnesty' to cover all the pre-85 boats that had lost their VAT paperwork.

Unfortunately many owners than lost the relevant proof of whereabouts in Dec 1992 - ie harbour dues bills or storage bills.......

 

[santeana]

Spot on, John! Proving build pre '85 is usually the easier task; from experience proof of being in EC waters on 31/12/85 can be surprisingly difficult.

 

[abbott013]

What would be really good is if HM R&C could except Part 1 registration as proof of being in the EU water.