Mandatory Boat Registration

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Thinking of buying a boat and I was thinking about registration. Most boats are registered in one way or another, VHF, EPIRB, UKSR part 1 / 3, etc. The difficulties these days in buying a boat, with VAT, Brexit and possible debts, what are the thoughts? Is it something that may help?
 
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Praxinoscope

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I don’t see any problems, VHF is advisable but not compulsory, few boats that restrict their sailing to coastal waters carry EPIB’s , so if not carried no need to have registration, likewise with SSR or Pt 1 registration is not mandatory.
Re -registering a boat that is on the SSR register is simple and cheap, Pt 1 a bit more complex and expensive.
We seem to be fortunate in the UK that we are relatively free of bureaucracy in that we don’t have to register our boats, and long may this remain so.
 
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Tranona

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Thinking of buying a boat and I was thinking about registration. Most boats are registered in one way or another, VHF, EPIRB, UKSR part 1 / 3, etc. The difficulties these days in buying a boat, with VAT, Brexit and possible debts, what are the thoughts? Is it something that may help?
The "difficulties" you allude to are really not there. Thousands of boats change hands every year without difficulty and compulsory registration would not change that, simply because the majority of boats in use do not have the necessary "provenance" to make registration meaningful. Boats do not have any specific legal status - they are chattels just like a television or a 3 piece suite. The only registration that has any meaning is Part 1 which is a register of title, but it is not compulsory nor is registering a charge against the boat compulsory. The reality is, however that very few private leisure boats are bought using finance that justifies a charge against the boat, and in most cases the lender will have in place a mechanism that will ensure that any potential buyer is aware of that charge.

The only area that does cause concern is boats that have a history that includes moving from one customs and VAT area to another. Prior to Brexit this was less of an issue as most movements were within the same customs area. since then of course boats that came into the UK after 31/12/2020 could be liable for VAT and certification. Again the number of boats involved is likely to be very small and easy to spot.
 

William_H

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OPO question re "debts" is an interesting one. Not a concern on a small boat but possibly for a high value purchase. What might be desribed as a lien or mortgage ona boat would require that the boat be clearly identifiable. (name is not so useful as it can be changed). serial number perhaps. Mostly I would think smaller boats would not be subject to mortgage so no real worry. Perhaps there is a register of liens that could be checked. In oz there is something similar re cars. Lastly the possibility that the boat is physically locked in a marina or yard pending payment of fees is more common. Just check with marina operator before you hand over cash. ol'will
 

Refueler

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Thinking of buying a boat and I was thinking about registration. Most boats are registered in one way or another, VHF, EPIRB, UKSR part 1 / 3, etc. The difficulties these days in buying a boat, with VAT, Brexit and possible debts, what are the thoughts? Is it something that may help?

UK based ? Then nothing is totally compulsory ... even the VHF station Licence and User Licences required - BUT provision in the rules for use in emergency situation by anyone etc. etc.

But if wanting to cruise outside of UK waters .... then you could find even with Commity - the locals demand docs etc.
 

Tranona

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OPO question re "debts" is an interesting one. Not a concern on a small boat but possibly for a high value purchase. What might be desribed as a lien or mortgage ona boat would require that the boat be clearly identifiable. (name is not so useful as it can be changed). serial number perhaps. Mostly I would think smaller boats would not be subject to mortgage so no real worry. Perhaps there is a register of liens that could be checked. In oz there is something similar re cars. Lastly the possibility that the boat is physically locked in a marina or yard pending payment of fees is more common. Just check with marina operator before you hand over cash. ol'will
In the UK the Ships Register performs that function. although primarily used by commercial ships, it is open to all boats over 7m and many yachts use it. Being a register of title a mortgage can be registered against the title. any prospective buyer can apply for a transcript which will show any registered charges. Most lenders insist that the boat is registered so that their charge will show, although some, mainly when small sums are involved may just hold all the other documents (Bill of Sale, VAT receipt) which the seller will need to help prove his title when he comes to sell. There may of course be unregistered charges, but these are difficult to enforce. if the sale/purchase is through a broker it is his job to do the due diligence and many will offer this part of the service to private buyers. Part of that service is to ensure there are no other potential claims against the boat such as unpaid marina bills. Generally speaking this system works well, and for the newcomer the RYA provides a publication that talks through the process of buying and selling boats both new and used.

However as identified earlier leaving the EU created a new set of potential problems with new rules covering the movement of boats between the UK customs area and the EU (both ways). For example my last but one boat I bought new in Greece without paying VAT because it was a charter boat. When I stopped using it for that, I paid VAT in Greece. Later I moved the boat to the UK where it still qualified as a VAT paid boat under then EU rules. I then sold it to another UK resident who took it to Spain. Following Brexit that boat became EU VAT paid, not because VAT was paid in the EU, but because it was located in the EU on 31/12/2020. Under the new rules, the then owner, who was the one who took it to Spain, could have brought it back to the UK and it would then be considered both UK and potentially EU VAT paid. If he sold it while it was still in Spain it would lose its UK VAT paid status. Equally if he sold it in the UK it would lose its EU VAT paid status. Complicated? - yes, although not difficult IF you have a good set of documents that trace the movements. Fortunately only a small number of boats on the market have this kind of history.

A register such as that used to identify finance charges in relation to cars is simply impractical for boats. Cars have a clear registered identity on a public open register and with estimates that over 80% of cars are financed through third parties, lenders work together to share information. On the other hand there is no registered identity for boats except as described earlier which is used when lenders want to have a charge against the boat. Otherwise most lending is on a personal basis, or commonly against other security like a mortgage on a property.
 

doug748

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..... The difficulties these days in buying a boat, with VAT, Brexit and possible debts, what are the thoughts? Is it something that may help?


Buying in the UK, you will want some form/s of evidence that the boat was in the UK before the "deadline" date, 31st Dec 20, as already mentioned. This is normally quite easy in the form of boatyard/marina receipts etc.

If you are spending a chunk of money, Part 1 registration is handy as it will tell you the owners name and address and details of the boat, that should tally with what you see before you. If not, there is something fishy or, more likely, the owner is not on top of things. Either way it is good to know. You can also confirm with the registration authority that there is no mortgage registered against the boat. Particularly with an expensive boat Part 1 is a good thing to keep up going forward.

The rest is fairly straightforward due diligence starting at the marina/yard where the boat is normally kept and registration is not a particular help at that point.
 
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