Selling UK vat paid boat in Gibraltar to UK owner

[BacktoBoats]

I have a uk vat paid boat that is currently in the Eastern med, and I would like to sail her to Gibraltar and sell her. The model of boat means a UK buyer is most likely , wanting to take her back to UK waters at some point. It appears there could be two issues:
1. Would she instantly lose uk vat paid status if sold in Gibraltar?
2. Assuming she still had uk vat paid status, if reimported into the uk by her new owner would uk vat then become due?

Thanks .

 

[capnsensible]

I have a uk vat paid boat that is currently in the Eastern med, and I would like to sail her to Gibraltar and sell her. The model of boat means a UK buyer is most likely , wanting to take her back to UK waters at some point. It appears there could be two issues:
1. Would she instantly lose uk vat paid status if sold in Gibraltar?
2. Assuming she still had uk vat paid status, if reimported into the uk by her new owner would uk vat then become due?

Thanks .

There is a very reputable broker from a well known chain in Gib. He will give you a straight answer rather than 47 different opinions on here.

Good luck, finding a berth in Gib may be difficult.

 

[westernman]

I have a uk vat paid boat that is currently in the Eastern med, and I would like to sail her to Gibraltar and sell her. The model of boat means a UK buyer is most likely , wanting to take her back to UK waters at some point. It appears there could be two issues:
1. Would she instantly lose uk vat paid status if sold in Gibraltar?
2. Assuming she still had uk vat paid status, if reimported into the uk by her new owner would uk vat then become due?

Thanks .

1) Yes.
2) Yes if new owner is UK resident. I.e. it is not a TA (temporary admission).

 

[Tranona]

Yes, UK VAT status is lost if the boat changes hands outside the UK. I am assuming you are the person who took it out of the UK. If the boat was in the EU on 31/12/2010 it will currently also have EU VAT paid status, but this will also be lost if it was sold in Gibraltar.

The only mechanism for retaining VAT paid status is to return it to the UK and claim Returned Goods Relief. Then you are free to sell it Equally if it does also have EU status you can sell it in the EU and it retains that status but loses UK status.

 

[jfm]

1) Yes.
2) Yes if new owner is UK resident. I.e. it is not a TA (temporary admission).

100% agree

 

[jfm]

The only mechanism for retaining VAT paid status is for the original exporter-from-uk to return it to the UK and claim Returned Goods Relief. Then you are free to sell it Equally if it does also have EU status you can sell it in the EU and it retains that status but loses UK status.

100% agreed but with the red words added just to doubly emphasise it and avoid anyone missing that important point (Tranona did cover it in his first para)

 

[BacktoBoats]

Thanks for all the comments. The answer seems pretty clear.

One further question. If the yacht was shipped back or sailed into the UK by a delivery crew, whilst I still owned it, would she still be elegible for returned goods relief?

 

[Tranona]

Thanks for all the comments. The answer seems pretty clear.

One further question. If the yacht was shipped back or sailed into the UK by a delivery crew, whilst I still owned it, would she still be elegible for returned goods relief?

Yes. The process is quite straightforward. The skipper reports arrival in the normal way confirming ownership of the boat . In theory this is sufficient. RGR is actually used every time someone sails out of territorial waters and returns - weekend trip to Cherbourg for example. However it would make sense to obtain written confirmation from HMRC of the return to show potential buyers the boat is legit. Here is the government guidance www.gov.uk/guidance/sailing-a-pleasure-craft-that-is-arriving-in-the-uk and in it you will find a link to the HMRC unit in Portsmouth that deals with imports of pleasure craft. Worth giving them a call if you decide to go down this route.