Sticky Fingers
Well-Known Member
Scala. The advice from the EU Commission to the RYA and Cruising Association is that UK VAT paid boats in UK waters on Brexit day will lose their Union Goods status under a "No Deal" scenario, and hence an EU27 buyer would need to pay VAT on re- importing to the EU. See RYA site (though not sure if need to be a member to see detail) https://www.rya.org.uk/knowledge-advice/current-affairs/Pages/no-deal-Brexit-scenario.aspx
Some posters on here believe that they know better than the RYA and the EU Commission advice - and hopefully it would not come to this. But I suspect that a prospective boat buyer from Germany, Holland, France etc is more likely to rely on EU Commmision statements than YBW Forum, so may decide not to take a risk buying a UK based boat unless the price reflects the VAT they may need to pay.
Hopefully your boat sale will progress smoothly and the new buyers will take it across the Channel sharpish. But if it fell through you might want to consider moving it, just in case it does deter buyers.
And with money in hand, personally I would not be rushing to spend a 6 figure sum on buying a recent motor yacht based in the UK until perhaps Jan/Feb time. The prospect of moving such a boat to the Mediteranean sun, perhaps on early retirement, seems to be popular idea for these boats (even if doesn't happen in practice). Hence there could be # a dip in the market values if there is a loss of confidence with the potential triple whammy of:
(a) EU buyers who have been propping up this high value segment stepping out of the UK market, and/or offering 20% less;
(b) worries about Shengen 90 day rules impacting usage of boats in the Med
(c) removal of red diesel fuel options.
# These are not certainties, but significant probability outcomes with current Government statements of exit on 31 October deal or no deal.
And this is a mid range scenario, before adding in the potential of some extra urgent "distress" disposals of boats IF some business owners discover their businesses are more adversely impacted by any post Brexit impacts than they anticipated.
Luxury boat prices are driven by confidence as much as hard facts. Hard to see scenarios where UK based boat sales prices in this sector rise significantly, but plenty of factors suggest could have a confidence drop mid winter. Hence to adapt the old adage, "sell in summer and go away, buy in winter after skiing holiday"
Oh, OK. Thank you. Seems bonkers but then so does everything else about B.
My boat sale is 99% done, it's going to Denmark. (Halcyon).