Transfer of Residence Relief - anyone heard of this ? Does this mean the boat concerned is VAT Paid status

[superheat6k]

I was today passed a document for a boat stating it had 'Transfer of Residence' relief, issued in 2004 to the prior owner of the boat.

This I am assured means the former Channel Islands vessel is deemed as UK tax paid (i.e. VAT paid), subject to not having been sold in the EC prior to 2005 (min 12 months from issue of the TOR letter), which it wasn't. It was last sold to the current owner / vendor in 2006.

In all the numerous threads on here about VAT I have never heard of this, but the vendor pack for the boat concerned has both a Letter stating its has TOR status signed and stamped by HMRC plus a C104A form also signed and stamped by HMRC.

So my question is :- Is the boat now in different ownership still VAT paid status, and if someone else buys the boat do they continue to enjoy the VAT paid status, and would a later purchaser also enjoy the same status ?

As an aside as far as I am aware she was in the UK on Brexit day, 31st ~December 2020.

 

[[70521]]

I'd contact HMRC and get the official view, in writing, as it is the only one that matters unless you want to challenge it in court.

 

[jonic]

If it has been done properly with the right supporting documents from HMRC (as it sounds like it has) it is correct.

The relief is granted by an HMRC officer and the boat may not be sold for 12 months.

Then, providing the new owner transaction(s) fit the usual criteria, the "VAT paid" status is passed on with the boat.

 

[superheat6k]

If it has been done properly with the right supporting documents from HMRC (as it sounds like it has) it is correct.

The relief is granted by an HMRC officer and the boat may not be sold for 12 months.

Then, providing the new owner transaction(s) fit the usual criteria, the "VAT paid" status is passed on with the boat.

Thanks. That's what the Broker has told me, just wanted to be sure. The documents do look correct, I just was not aware the procedure exists or at least existed in 2003 / 4.

 

[jonic]

Yes, it is not seen that often but it does exist. We had one in December, just gone, and the original TOR was granted in 2006.

 

[AngusMcDoon]

Yes, it is not seen that often but it does exist. We had one in December, just gone, and the original TOR was granted in 2006.

It generally works both ways as well. If you are permanently transferring your location from the UK to an EU country the country you are going to will have a similar scheme. For example, here's the Irish one...

Relief from Customs Duty and VAT on transferring residence to the EU

 

[superheat6k]

I have since found the C104A was superseded by TOR1 form in 2017, but the process is genuine, and is still available.