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
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.
You cannot "do nothing". Everybody entering UK in a pleasure boat has to follow the guidance and submit a form. See the links. Nothing to do with age of boat and where it has been. No big deal. You tick the box, submit the form and get clearance. The RGR process is designed to make life easy for sailors such as the OP. You will have to do exactly the same when you have finished your boat and pop across the channel to collect your beer wine and cheese.
That is completely different to vat declaration for import.
In what way? Every time a boat enters the UK it is a potential import and therefore VAT may be due. However RGR is specifically there as a relief for goods including boats that have UK VAT paid status to enter without VAT being paid. It has conditions, one of which is that the boat must be in the same ownership as when it left, which from what the OP says applies here. The fact that he has been away for 4 years rather than a weekend to France is irrelevant. He ticks the box to claim RGR. Border Force and HMRC may note that he arrived from (say) Antigua and ask questions but from what the OP says there does not seem to be a "chargeable event" so the boat retains its UK VAT paid status
On the call for RYA clubs, we were told that the new system (Small Craft reporting) required an RGR declaration each time the boat left and re-entered the UK. Filling out the form and ticking the relevant box does that.
Oh, don't worry about the Royal Navy; it's in the yard for repairs.
