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Old 08-05-2017, 16:25   #1
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Tax and residence in EU

Slightly confused. Hi there I am looking at purchasing a boat in Florida but I live in the U.K. Once I buy the boat I plan to live on it permanently and circumnavigate the globe. And rent my house out but if I sail back to the UK will I have to pay tax on it? Am I classed as a resident?
I would be grateful if someone could clarify this for me.
Many thanks
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Old 08-05-2017, 16:35   #2
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While we are still in the EU my understanding is.. if you are a UK Citizen and it can be proved the boat is your only residence it will only be liable for VAT when you go to sell it.. the same goes for CE certification if it is not already certified..
This was what I was led to understand when I brought a Hunter 37 across from the States back in '05.
What the rules may be if you return post Brexit is open to speculation tho' likely this should not change if it is your home.
In your case owning a rental property will exclude you from the deal.
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Old 17-05-2017, 02:01   #3
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Re: Tax and residence in EU

Quote:
Originally Posted by SailingSaviour View Post
Slightly confused. Hi there I am looking at purchasing a boat in Florida but I live in the U.K. Once I buy the boat I plan to live on it permanently and circumnavigate the globe. And rent my house out but if I sail back to the UK will I have to pay tax on it? Am I classed as a resident?
I would be grateful if someone could clarify this for me.
Many thanks
SailingSaviour.
A good source for information about regulations in Europe is my website. Just Google "JimB" to find it. The page and paragraph which answers your question is Documents, VAT and Waste Control | JimB Sail

It uses information from HMRC Notice 8 and gives links to it so you check to see if your exact case is covered when importing non-VAT paid boats as an EU citizen. The notice is rather heavy reading on its own!
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Old 17-05-2017, 02:27   #4
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Re: Tax and residence in EU

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Originally Posted by jckb View Post
A good source for information about regulations in Europe is my website. Just Google "JimB" to find it. The page and paragraph which answers your question is Documents, VAT and Waste Control | JimB Sail

It uses information from HMRC Notice 8 and gives links to it so you check to see if your exact case is covered when importing non-VAT paid boats as an EU citizen. The notice is rather heavy reading on its own!
That's a great place to start.

The short answer is -- yes, when you arrive in EU waters you are liable to pay VAT and you might have to show a CE mark. Unless Brexit has taken place by that time, in which case -- God only knows what the rules will be.

Another twist is you might get out of VAT in case you are considered to be "transferring your residence" from outside the EU, back to the UK.

"3.15 Are there any additional requirements if I am transferring my residence to a place in the EU?

If you are moving your normal home from a non-EU country to an EU country, including the UK, you may import your vessel free of customs duty and VAT providing that you:
  • have lived outside the EU for a continuous period of at least 12 months
  • have possessed and used the vessel outside the EU for at least 6 months prior to importation
  • did not get the vessel under a duty/tax free scheme (see below)
  • declare the vessel to an officer
  • will keep the vessel in the EU for private use
  • do not sell, lend, hire out or otherwise dispose of the vessel in the EU within 12 months of importation unless you notify the Personal Transport Unit first, on Telephone: 01304 664 171, and duty and VAT is paid on disposal"
https://www.gov.uk/government/public...-uk#section315


It's very complicated and deserves careful and thorough study.
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