RYA and British Marine change Returned Goods Relief advice

[st599]

UK boat owners left stranded in Europe and leisure marine industry faces turmoil due to Government inaction

Seems the advice is now, get your boat back to the UK before 23:00 on the 31st December.

 

[nortada]

UK boat owners left stranded in Europe and leisure marine industry faces turmoil due to Government inaction

Seems the advice is now, get your boat back to the UK before 23:00 on the 31st December.

This appeared to be a very EU/UK Brexit thing.

How are UK vessels returning from an extended cruise outside of the EU affected

Our boat has been in Portugal for many years so if we chose to return the boat to the UK (which is most unlikely), via the Atlantic circuit, how would we be treated

 

[st599]

On the club's call last night, the RYA said they'd been told Returned Goods Relief would apply as a special case, so if a boat was returned by end of 2023, no tax.

However they've now been told the special case isn't happening, so after December, a boat has to return within 3 years since export to avoid being taxed.

 

[sailaboutvic]

Things are really getting Fu@k up , one as to wonder where it's all going to end , many of us have made plain on the rules and laws that applied when we first started our cruising days now it seen we all going to have to think again .

 

[nortada]

Things are really getting Fu@k up , one as to wonder where it's all going to end , many of us have made plain on the rules and laws that applied when we first started our cruising days now it seen we all going to have to think again .

If this comes to pass, I assume the VAT due, would be based on the current value of the vessel, which if things continue as they are going, could be very low.

On a personal level, I have no intention of repatriating the boat back to the UK but when that times comes (hopefully, still a few years hence) we will sell in Europe.

Time will tell.

 

[sailaboutvic]

We was thinking on the lines of heading back north and do Scandinavian for a season or two , I have to admin not looking for the the cold weather , but now I don't know .

 

[Graham376]

This goes against the advice I received when I contacted VAT Import and Export dept for advice. They said the 3 year limit was for commercial goods and RGR for personal goods had no time limit and were unaware of any private boats charged on return to UK under the same ownership. Seems the goal posts may have been moved.

 

[Resolution]

Have I understood this correctly:
1. I buy a boat in the UK and pay VAT on its value.
2. I decide to sail off into the blue.
3. Because I am a UK resident and intend to return to the UK ultimately I do not claim VAT refund on the boat leaving the UK.
4. Several years later we sail back into the UK and are met with a demand for Customs dues (?) and VAT.

Surely this is HMRC having their cake twice?
Peter

 

[sailaboutvic]

I know this is a UK thing and nothing to do with the EU but this has been my concern , with residency in different EU country not that I want to drift this thread but how many more goal post are going to be moved ?

 

[Clancy Moped]

Don't know about moving the goal posts, reading that is sounds like the goal posts are yet to be delivered, let alone put up.

 

[Yngmar]

Regrettably, the meeting gave the RYA and British Marine no confidence that there is an understanding of the recreational boating market and that any of the issues we have raised are being given appropriate consideration by HMRC.

By RYA standards, that's pretty serious talk

What a mess.

 

[Resolution]

Further thought: now that HMRC have moved the goal posts (and most of the pitch), can I apply to reclaim the original VAT paid when I purchased the yacht?
If enough of us "exported" owners did so, I bet HMRC would sit up and take notice.
Peter

 

[nortada]

This goes against the advice I received when I contacted VAT Import and Export dept for advice. They said the 3 year limit was for commercial goods and RGR for personal goods had no time limit and were unaware of any private boats charged on return to UK under the same ownership. Seems the goal posts may have been moved.

Possibly the goalie (RYA) are standing in front of the wrong goal.

Suspect fact will replace speculation before we return to the UK.

Rather the long flog of the Atlantic Circuit a season in North Africa (Tangiers) could be another option.

 

[Graham376]

Further thought: now that HMRC have moved the goal posts (and most of the pitch), can I apply to reclaim the original VAT paid when I purchased the yacht?
If enough of us "exported" owners did so, I bet HMRC would sit up and take notice.
Peter

IIRC, you would have to be the original purchaser who paid the VAT and there are other rules as well such as a maximum time allowed after purchase before leaving UK (or EU at the moment)

On the brighter side, anyone in the UK buying a NEW boat in the UK next year to sail around the Med, should be able to get it VAT free for export. Previously to do this it would have to leave EU waters. It would of course have to leave the EU for a day every 18 months to avoid import taxes. VAT would be payable on eventual return to UK but on reduced value as a used boat.

Anyone know what the status of Gibraltar will be? Will a boat visiting there be in UK or not?

 

[grumpygit]

Possibly the goalie (RYA) are standing in front of the wrong goal.

Suspect fact will replace speculation before we return to the UK.

Rather the long flog of the Atlantic Circuit a season in North Africa (Tangiers) could be another option.

Which ever goal the RYA are in front of, it will be probably 4th division or lower. From my dealing and their past performances this lot do not inspire me at all.

I agree, I suspect truth will out. Although I can't think of a reason to return the boat back to the UK, it is UK VAT paid and I am going to stay with the assumption that you should not have to pay the VAT twice.

 

[greeny]

IIRC, you would have to be the original purchaser who paid the VAT and there are other rules as well such as a maximum time allowed after purchase before leaving UK (or EU at the moment)

On the brighter side, anyone in the UK buying a NEW boat in the UK next year to sail around the Med, should be able to get it VAT free for export. Previously to do this it would have to leave EU waters. It would of course have to leave the EU for a day every 18 months to avoid import taxes. VAT would be payable on eventual return to UK but on reduced value as a used boat.

Anyone know what the status of Gibraltar will be? Will a boat visiting there be in UK or not?

Gib may get busy this January. Need to book early methinks.