Originally Posted by Zonker
Can anyone explain how the boat gets "into" a UK Ltd (sorry might sound extremely dumb ... :-)
Can I buy the boat before the Ltd is formed and "give" it to the company or does the company have to buy the boat from the previous owner ?
If the UK Ltd buys the boat from a German owner (Germany VAT paid), is the "VAT paid" status still valid ?
I won't do links because like this this one you gave
It provides a partial and incomplete picture and is wrongly interpreted, the link you reference is about the difference between what is a leisure vessel and what is regarded as a commercial
craft. The subject is large and best addressed in a specific circumstance with a tax practitioner.
The VAT threshold is 77k. If the boat purchase
is over that then there may be a need to vat register.
Bik on the use of company assets ( including accommodation, including your " holiday home" example ) applies to directors irrespective of income
threshold , various tables from revenue show the effect and charge back. For example of you wrap up a holiday home in a company and you as a director then take holidays in it , them you are receiving benefit from a company asset and charge backs to you apply.
" giving" the assst to the company involves a sale
for in effect no concern. The company must value the asset on its balance sheet , an asset of considerable worth acquired for zero concern can give rise to significant capital gain and hence taxes
If the company buys the boat from the PO , the vat threshold may be exceeded. Hence , it has been argued that vat must be charged on any subsequent sale. Hence vat is due again ( vat is not an asset status, even though the term is used, vat is a transaction tax )
The company could be lent the money
to buy the asset the via a directors loan , see the various provisions re this.
I have had it questioned that a boat could for, the basis of a dormant company. and still be regularly used.
Nor do I except that many normal sized sub 150k yachts are wrapped up in company's in Europe
. I'm was in this game
and in my experience it's rare to find one that was done legally. Many people had done it but relied on mis declaration or false returns to allow it to take place.
Wrapping up a leisure yacht in a uk company merely to claim uk registration
is nuts. Find a uk accommodation address and use the SSR instead.
Don't listen to me, get expect advice , from a good auditor then come back here and see it it makes sense.