VAT paid status expires 1st Jan 2021 for UK registered boats kept abroad long term . 30,000 boats probably affected

[TernVI]

Shame one cannot come back to the UK like a visitor from any other country would do. I would like to bring the yacht back for a winter to get work done, but it seems I would be liable for paying VAT on entry.
TS

You wouldn't really want to do that, because the work would generate an import bill when you take the boat back to euroland.

 

[Pete7]

Shame one cannot come back to the UK like a visitor from any other country would do. I would like to bring the yacht back for a winter to get work done, but it seems I would be liable for paying VAT on entry.
TS

You might not be able to, but a friendly European could. If by chance you happened to be on holiday in the same port at the same time, well........

What a nightmare, Cornwall again next year me thinks.

Pete

 

[goeasy123]

I think that this thread is confusing two different reliefs. There is the returned goods relief for boats that have been outside UK waters and return within 3 years provided that they have not changed hands. This is being enforced to the three year limit. It is not a change in legislation only in application. For those circumnavigating there is a different relief for non-residents which allows "personal possessions" even if they have been purchased abroad to be brought back to the UK and are exempt of tax and duty. To obtain this relief you have to be a non-resident for tax purposes so it is important not to come back to the UK in yopur year of return and make sure your accountants sort it out with HMRC.

In the past, HMRC have not really bothered because the 3-year returned gods rule seems to be over ridden by the personal possessions rule, in effect the change will affect UK residents who have kept boats abroad and not sail around the world live-aboards.

As I understand it you are right in theory, but one needs to be able to pass the RDR3 Statutory Residence Test. This is a big challenge as you have to severe key ties with the UK. The circumnavigators I know can't do.

If you can't meet the SRT then you're subject to RGR and the 3 year rule.

Please correct me if I'm wrong?

 

[jdc]

The UK government has bigger issues to sort than the privilege of non-working people to spend more than 90 days in another country where they don't have residence.

Aparty from the crassness of the assertion that those wanting to spend greater than 90 days out of 180 in the Schengen area won't be working (most of my travel is for work), the government has spent time on this issue - actively discriminating against its own citizens. We propose to allow all others to come to the UK for 6 months, and when the same deal was offered by the EU we turned it down to make sure we'd only be allowed 3 months. Maybe someone who voted leave might like to explain the cunning rationale behind this asymmetry?