LittleSister
Well-known member
I haven't been following closely the various discussions on this (I'm not directly affected), so the info in the following letter obtained by the Royal Harwich YC may well be old news, but it comes from the Financial Secretary to the Treasury, Jesse Norman, only a few days ago, so is authoritative, and also includes a link to Government guidance on the matter.
James Cartlidge MP House of Commons London
SW1A 0AA
07 December 2020 Your ref: JC26874
HM Treasury, 1 Horse Guards Road, London, SW1A 2HQDear James,
Thank you for your email 16 November enclosing correspondence from your constituent, XXXXXXXXXXXXXXXX, about the VAT position of yachts after the end of the Transition Period (TP). I am replying as Minister with strategic oversight of the UK tax system.
At the end of the TP, movements of goods from the EU will be treated the same as movements from the rest of the world. This means that import taxes, including VAT, will be due unless any relief applies.
Returned Goods Relief (RGR) will be available for goods returning to the UK, including privately-owned boats, as long as the conditions outlined in legislation are met.
The general rule for RGR is that the goods must return within 3 years of export. Additionally, for VAT RGR to apply, the exporter and importer must be the same person, and any VAT due must have been previously paid in the UK or EU.
In addition, there will be a one-year grace period from the end of the TP. This means in 2021 owners of goods in the EU can return them to the UK, no matter how long ago these left the UK, and claim RGR, subject to meeting the other conditions for the relief. This additional grace period is aimed at helping businesses and individuals whose goods have been in the EU for over three years to return to UK under RGR rules.
XXXXXX can find guidance on RGR online at:
www.gov.uk/guidance/pay-less-import-duty-and-vat-when-re-importing-goods-to-the-uk-and-eu .
Yours ever,
RT HON JESSE NORMAN MP
OFFICIAL
