VAT and company boats

[samwise]

If a private individual is buying a boat that has previously been owned by a UK company and kept in the UK and upon which VAT has not been paid, how tricky is the paperwork? I assume that the seller (the company), having already claimed the VAT back when they bought it, is responsible for paying the VAT due on the sale to the Revenue. The new owner will need proof of VAT paid as part of the essential documentation of ownership. It looks a potential red tape minefield. Anyone with an experience of this? Is there a big enough hassle factor to justify asking for a price adjustment?

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[Althorne]

Any company vehicles which have claimed back VAT must charge the new owner VAT on the selling price and pass that money on to the VAT office in it's next return. Anyone buying said vehicle must ensure they have a VAT paid receipt or could be liable to pay the whole of the VAT required if no proof of VAT paid can be produced.
Hence always establish that VAT has been paid (and not recovered) and if not make sure the receipt you receive has the price + VAT paid itemised to prove you have paid the VAT. Seperating price and VAT goes some way to proving the VAT was paid on the paid price. Such a receipt should also be made part of the sale agreement when you are negotiating the sale because it then falls within the legal obligations of the seller.

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