VAT situation after returning to the UK after a 4 year circumnavigation

[scr0che]

Returning to the UK after a 4 year circumnavigation and wondering what the VAT situation is? VAT was paid in the UK 35 years ago when the boat first arrived from Sweden (I have the receipt). It's all very unclear on the HMRC website!

 

[Tranona]

Returning to the UK after a 4 year circumnavigation and wondering what the VAT situation is? VAT was paid in the UK 35 years ago when the boat first arrived from Sweden (I have the receipt). It's all very unclear on the HMRC website!

If you left from the UK and the boat was in the UK (and not changed ownership while outside the UK) then the boat is eligible for Returned Goods Relief (RGR) and no VAT is payable. The original VAT payment is irrelevant. There is a box in the form for customs declaration asking if you are claiming RGR and you just tick it. Nothing out of the ordinary as every time a UK based boat leaves the UK even for a weekend to France it has to apply for RGR on return. Guidance here www.gov.uk/guidance/submit-a-pleasure-craft-report and more generally here www.gov.uk/guidance/sailing-a-pleasure-craft-that-is-arriving-in-the-uk

As a bit of background, before leaving the EU there was a time limit on claiming RGR or nominally 3 years - with discretion. Now the UK can make its own rules this time limit has been removed (following pressure from organisations such as the CA and RYA). So follow the guidance and you should not have any problems.

 

[st599]

If you left from the UK and the boat was in the UK (and not changed ownership while outside the UK) then the boat is eligible for Returned Goods Relief (RGR) and no VAT is payable. The original VAT payment is irrelevant. There is a box in the form for customs declaration asking if you are claiming RGR and you just tick it. Nothing out of the ordinary as every time a UK based boat leaves the UK even for a weekend to France it has to apply for RGR on return. Guidance here www.gov.uk/guidance/submit-a-pleasure-craft-report and more generally here www.gov.uk/guidance/sailing-a-pleasure-craft-that-is-arriving-in-the-uk

As a bit of background, before leaving the EU there was a time limit on claiming RGR or nominally 3 years - with discretion. Now the UK can make its own rules this time limit has been removed (following pressure from organisations such as the CA and RYA). So follow the guidance and you should not have any problems.

Isn't there a clause about betterment or similar legal term? That it has to arrive back in the same state or worse than when it left. So if you've added the latest Raymarine plotter you got on a delayed in Uship, you need to pay?

 

[Tranona]

Isn't there a clause about betterment or similar legal term? That it has to arrive back in the same state or worse than when it left. So if you've added the latest Raymarine plotter you got on a delayed in Uship, you need to pay?

Yes - but that is aimed at taking a boat out for major work that adds value - for example to the CIs where there is no VAT and brining it back to sell. Unlikely to apply to a 35 year old well travelled cruiser which has probably lost value in the 4 years even if it had replacements such as new electronics. Remember VAT is a tax on value added and doubt HMRC would even ask in this sort of situation.

 

[potentillaCO32]

I can't imagine anyone taking any notice for a 35 year old boat.
I wouldnt say anything. No one in authority would have any better idea at all.
Plead ignorance if anyone ever asks anything which they won't.
In a year or two the circumnavigation will be long forgotten.