Importing a boat from EU
- Thread starter tsekul
- Start date
Tranona
Well-Known Member
Buying a used boat from the EU for use by a UK resident in the UK is essentially a non starter. There are some situations where a boat that originated in the UK but is now in the EU can be returned and then sold without paying VAT but this is increasingly rare as it effectively only applies if the boat is still owned by the same person who took it out of the UK.
warwicksamuel
New Member
I'm just wondering if you can expand a little on your last comment copied above
I've found a boat in the republic of Ireland that I'd like to buy and permanently import into UK (Scotland). The boat was UK manufactured in 2008 and bought new direct from the builder by the current (Irish resident) owner. He paid UK VAT vat the time of purchase (17.5%).
Givne Brexit etc i assume that i would need to pay UK VAT (again) on the used bought on import but your comment makes me think there may be a (legitimate) way around this as the current owner was the original and only ever owner from new?
Hope my query makes sense and look forward to hearing from you
Kind regards
Tranona
Well-Known Member
To avoid VAT the current owner will have to return the boat to the UK and claim Returned Goods Relief. From what you say he should be eligible, but he needs to check with HMRC. The rules are here Sailing a pleasure craft that is arriving in the UK and buried in there is the contact details for the HMRC office in Portsmouth that deals with private imports and returns. Once the boat is in the UK and has confirmation that RGR has been granted he is free to sell it to you.
lustyd
Well-Known Member
Would an Irish resident get RGR in the UK?
Tranona
Well-Known Member
Yes. Residence has nothing to do with VAT or the right to RGR. It is the boat that counts. If he had paid in Ireland then it would be an EU boat, but he seems he has a VAT invoice that shows it was paid in the UK. That is my understanding but of course really important to clear it with HMRC in Portsmouth before making any commitment to buy - and of course assumes the seller is prepared to deliver the boat to the UK before the sale proceeds.
nevis768
Well-Known Member
nevis768
Well-Known Member
I am completely mystified as to how of any kind of official would know where your boat comes from if it goes into a Scottish marina or mooring, unless you tell them. Equally mystified and doubtful if any official would ever ask about RCD. I would be surprised if any Scottish official knew what RCD was. If it was a very expensive yacht then it might attract some attention, but any thing under 250k, for example, is not going to attract any interest from any official. I can see a possible issue if you take it back abroad. When I bought my boat I was given a piece of paper which said where it was on Brexit, but as I only intend sailing around Scotland it is a completely useless piece of paper.
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lustyd
Well-Known Member
Isn't residence the part that triggers an import rather than TI?
warwicksamuel
New Member
Many Thanks for your reply .. I’ve read the guidance and will make contact with HMRC but I’m a little sceptical if it will work in my case as there seems to be a 3 year limit between original export to EU and subsequent return …
warwicksamuel
New Member
Thanks for all the comments
Further update - email now sent to the specialist "pleasure craft" unit at HMRC - speaking with other HMRC more general departments it seems to come down to whether they will grant a waiver to the normal 3 year time limit for Returned Goods Relief".
The autoreply suggested a reply within 10 working days - I hope its sooner but I'll share the response in the hope it'll help others in a similar situation
Further update - email now sent to the specialist "pleasure craft" unit at HMRC - speaking with other HMRC more general departments it seems to come down to whether they will grant a waiver to the normal 3 year time limit for Returned Goods Relief".
The autoreply suggested a reply within 10 working days - I hope its sooner but I'll share the response in the hope it'll help others in a similar situation
Tranona
Well-Known Member
The 3 year limit does not apply to boats. Removed a couple of years ago after campaigning by the RYA and CA because of all the boats in the EU affected by Brexit.
dunedin
Well-Known Member
For the UK the 3 year limit on RGR was recently dropped. So as long as brought back by same owner should be fine.
Tranona
Well-Known Member
Only if none of the reliefs apply and RGR may well do in this instance.
Tranona
Well-Known Member
Smugglers of brandy from France in the C18th used to think the same. The point is bringing a boat into the UK customs area from outside without declaring it is a criminal offence. The link I provided earlier explains what you have to do and failure to do that could lead to prosecution.
warwicksamuel
New Member
Fingers crossed that HMRC are supportive ...
dunedin
Well-Known Member
You are probably correct in practice for most of the time. Scotland doesn’t have “port police” checking papers like some places in the Med seem to have.
But when come to sell the boat the gap in the paperwork could be problematical.
PS. And don’t forget HMRC employ tax investigators - and I know they often browse social media to help target compliance work.
warwicksamuel
New Member
Should perhaps have added that the boat in question is on a road trailer so would be brought back via road and ferry (unless I decided to abandon the trailer). As such I'd imagine that the "import" of the boat might well be observed and queried so I want to be sure of my ground before committing to a purchase.
Tranona
Well-Known Member
If you bring it direct from Ireland to the UK on a ferry then it will likely be checked but if it comes through NI it is less clear. You cannot bring it direct - only the current owner can if applying for RGR. However there are no checks at the north/south border, nor seemingly on the NI UK mainland border.
nevis768
Well-Known Member
I think if you have it more than 5 years it wouldn't make any difference, when I bought a boat last year there was no documentation to prove VAT was paid, but being a 1984 boat who would ever enquire unless it was a high value item. Being an "investigator' myself, social media checks are only usually done following the start of an investigation, they wouldn't normally trigger one. If I did buy one abroad in these circumstances I wouldn't be advertising it it on a social media. But, as you say, the likelihood of a relatively low value boat coming to their attention is virtually nil in Scotland, and probably the same in England away from the busy ports.
