lustyd
Well-Known Member
Returning Goods Relief. As a citizen you're allowed to bring property home with certain time limits. In the UK I think it's 3 years as standard but they will discuss if longer.
VAT a thorn in buying
- Thread starter Flyer295
- Start date
Graham376
Well-Known Member
Not if they catch you. Return Goods Relief can only be claimed by the person who exported the boat and it's EU VAT status was lost on 31/12/20. OTOH, if you are permanently moving back and taking up residence, then there are allowances.
lustyd
Well-Known Member
And Lomax did export the boat when Brexit happened. It didn't go anywhere but that counts as export, just as it would the other way around.
Graham376
Well-Known Member
He bought the boat in the UK, not EU. I would suggest it was the previous owner who exported it. We have the problem the other way around, Brits who purchased a UK VAT paid boat in the EU before Brexit, have to pay VAT if they bring it back to UK.
AngusMcDoon
Well-Known Member
It doesn't matter. It's not relevant. You bought the boat in the UK. Therefore you can't use EU RGR. Your citizenship & the boat's registration flag state are also not relevant. You are a UK resident & that's what matters.
There are different rules for people permanently moving from one country to another which allow them to bring their possessions with them tax free, but they are restrictive, vary from country to country & are hard to find information on. You'd need professional advice if you go that route. RGR is not for immigrants where the person changes their country of residence permanently but rather it's a relief applicable in certain situations when the boat changes customs area.
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lustyd
Well-Known Member
In 2016 that was the EU. As such, the boat was exported from EU on B-day unless they've explicitly said differently. If so, post a link
Tranona
Well-Known Member
Not sure where you get this from. It is a boat that was bought in the UK in 2016 and was here on B Day. it was not "exported" on B day. It was here and had been for 7 years at least and maybe even longer. Where is was before 2016 is also irrelevant
lustyd
Well-Known Member
Perhaps the EU have different rules, I did ask for a link if someone had info. If a UK resident owns a boat abroad they can still bring it home under RGR as though exported on B-day, I assume EU has similar arrangements.
Tranona
Well-Known Member
He is an EU citizen but UK resident (like about 5m others!) and owns a boat bought in the UK. He could only claim RGR if he had bought it in what is now the EU and is taking it back - except he has exceeded the 3 year limit! No different from a UK citizen resident in the EU who owns a boat bought there which he cannot bring into the UK - even if it was originally from the UK and he bought it off a UK resident. RGR is very restrictive as it can only be used if the boat does not change ownership outside the respective VAT territory.
lustyd
Well-Known Member
Ah good point. As UK resident then it'll be an export for sure. Needless to say I skated over that bit for some reason 
Graham376
Well-Known Member
If a UK resident bought a UK VAT paid boat in the EU prior to B day and it remained in EU, he/she can't claim rgr on return to the UK. It was exported on the day it left the UK so only the person who took it out can claim rgr on return.
Brexit guidance – a marine update: VAT on pleasure craft (shoosmiths.co.uk)
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wonkywinch
Well-Known Member
This thread has brought me back down to ground thinking I can copy Tom C and buy a 1990s Mason 44 in the USA and bring it over here. Delivery costs, converting electrics to 240v, VAT, the current exchange rate, the UKCA and all inherent risks buying from afar. Back to renting 'n' dreaming
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Tranona
Well-Known Member
The key thing about Tom's deal was the boat had much new equipment particularly the engine that was current CE compliant and the designer was able to provide data and drawings for compliance with the RCD CatA. Pound was worth more then which helped.This thread has brought me back down to ground thinking I can copy Tom C and buy a 1990s Mason 44 in the USA and bring it over here. Delivery costs, converting electrics to 240v, VAT, the current exchange rate, the UKCA and all inherent risks buying from afar. Back to renting 'n' dreaming
Uricanejack
Well-Known Member
I think most charter boats are or at least used to be non vat paid.
when looking the broker should be able to confirm vat status.
effectivly two identical boats have two different values.
Tax Paid
And
Non tax paid.
look at the price add the tax that’s the price to you.
if to high look for different boat. Or offer lower price based on the additional hassle and annoyance of dealing with tax.
Buying a boat overseas has its own additional hassles tax is just one of them
when looking the broker should be able to confirm vat status.
effectivly two identical boats have two different values.
Tax Paid
And
Non tax paid.
look at the price add the tax that’s the price to you.
if to high look for different boat. Or offer lower price based on the additional hassle and annoyance of dealing with tax.
Buying a boat overseas has its own additional hassles tax is just one of them
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Ningaloo
Well-Known Member
Yes.
If you are UK resident, buy new and take ownership outside UK VAT jurisdiction (usually CI) you avoid VAT. About the only Brexit benefit I have come across.
If you are not UK resident and buy from a UK dealer, the same applies. You don't pay VAT in your country of residence (assuming it has VAT) until you import the boat and this is if no concern to a UK dealer who only has to satisfy HMRC.
Note that you cannot take ownership within UK VAT jurisdiction.
WindyWindyWindy
Well-Known Member
Perhaps the solution would be to have the boat owned in the most convenient tax jurisdiction. An EU company could hold it in the EU indefinitely and it could visit Britain under that ownership.
Fairly expensive to set up, but presumably the vat bill must be substantial to be so worried about it.
Fairly expensive to set up, but presumably the vat bill must be substantial to be so worried about it.
Ningaloo
Well-Known Member
Presumably the EU company would be liable for EU VAT?
Tranona
Well-Known Member
Regrettably that does not work. Do you think HMRC would allow that? Having a boat owned by a company in the EU makes absolutely no difference. If as a UK resident you bring it into the UK it is liable for VAT
WindyWindyWindy
Well-Known Member
It's not your boat though. It'd be subject to temporary importation into the UK like any other EU owned boat.
Regarding the other comment, EU vat would be due of course, but presumably it's EU paid if it's there already in private ownership.
westernman
Well-Known Member
Yes. But watch out for HMRC's definitions of a "Tax Avoidance Scheme".
If you are the only beneficiary owner of the EU company (information which is disclosed on the company registration documents and available for download!), then you will fall fowl of that even if you are within the law.
You would have to pay charter fees + VAT to your owning company when you are on the boat. To stand any change of avoiding being classified as a Tax Avoidance Scheme the company must have an expectation of being able to be profitable. Which means its income is enough to pay for the boat. And the VAT on that income would actually be more than if you had simply paid VAT on the boat.
Just a reminder:
So if you don't want to pay VAT, buy the boat for export from the UK to an EU location. And don't ever bring it to the UK. And take it out of the EU every 18 months.