Returning to the uk on a repaired boat VAT?

[voyager35]

i have had the misfortune of losing my mast and sails mid Atlantic . The boat is now safely in the Azors where it will stay for the winter.
It is a uk registered yacht Vat paid and built in 1987.I left the uk in May this year. Assuming i can get the boat repaired in the Azors, when i return to the UK next summer my understanding is that the cost of the mast and sails which could be upto £40000 would be subject to VAT needing to be paid.
Is this assumption correct?

 

[Fr J Hackett]

Who would know?

 

[B27]

Not sure how it works.
Does the OP avoid paying VAT in the Azores, as the mast etc is to be exported?

I'm guessing an insurer might be paying, so a paper trail will happen?

 

[Baggywrinkle]

Sounds like essential repairs/maintenance to me.

In order to be eligible for the returned goods relief regime when you come back into the UK, and therefore keep your free-circulation status you will need to meet the following requirements:

• The owner of the vessel should remain unchanged between exportation and next importation into the UK
• The vessel shouldn’t be substantially modified (the vessel can’t be transformed; maintenance and routine works are accepted)
• The vessel should come back into the UK within 3 years after the exportation

You have the new mast and sails, but you also now have a repaired boat - so you can argue that there is no increase in value and that the repairs were essential.
I assume your insurance company paid so you have proof it was damage and an insurance claim, IMO there would be no impact on the value of your boat and you will not need to pay any additional VAT.

Guide to Returned Good Relief – Recreational Pleasure Craft - PKF Francis Clark

 

[dunedin]

I am no expert but this sounds like restoring to original condition, not a chargeable improvement in value.
On the other hand if changing to a carbon spar, in boom reefing and laminate sails (ie not like for like replacement) then would be different.

 

[Tranona]

Agree with post#4 with the exception that there is no longer a 3 year limit on RGR for private yachts. The no modifications bit is to cover taking the boat out of UK to have major work done to enhance the value.

When you return following the procedure for notifying customs, declaring the repairs and that notification plus their response is your evidence you have returned the boat. Might be worth giving the Pleasure Craft Unit of expertise a call to clarify. Link and phone number in this
www.gov.uk/guidance/sailing-a-pleasure-craft-that-is-arriving-in-the-uk
which is the official guidance.