Boats with unpaid taxes

[Jimbo485]

The SSR in the UK costs 25 pounds, is good for 5 years and is recognised internationally. No need to take the boat to the UK. Just go online and use your credit card and wait for the rego docs to show up in the post.

Very easy.

Get the US rego deleted and keep the evidence of the deletion.

[skipmac]

Originally Posted by Bluewaters2812

My question remains though: Can a USA state that is owed taxes on a particular yacht, seize the yacht from me as the new owner and hold possession until either the previous owner or I paid the arrear taxes?

Regarding sales tax, my understanding is the tax is levied against the purchase and not against the boat so there would not be a chance of a lien against the title.

Since FL has no property tax on boats I'm not sure how that would be handled. The greater concern would be if there was a bank loan against the boat which would certainly be a lien against a clear title.

[Bluewaters2812]

Originally Posted by Pete7

Sadly it's more than that. Import duty plus VAT on the import duty plus cost of transporting it from say the US, plus VAT on the cost of transport to the UK. Then you need to have the thing pass CE so add another few grand to the bill There is an article here on it.

CEProof | American Imports (ASB)

C 104A Vessels - Importation of a private vessel into the United Kingdom on transfer of residence from outside the European Community (EC)

Pete

Thanks for that link (I had a look at the C104A link). It is clear from that, that I am a UK/EU resident and that means I do not have the luxury of the 18 months if I register the boat in the UK/EU. I would have to be a non EU resident to qualify. I guess for me sailing the boat into EU/UK waters presents an immediate problem of all the vat and import duty implications etc etc.

I do have South African citizenship too though, so I might be able to pull that one off and qualify for the 18 month cruise period. The bottom line for me though is that I should register the boat in the USA or BVI or the like and not the UK. I have no need or desire to register it in the UK anyway. If I do register the boat in the USA / Caribbean I would be able to sail and cruise the med for 18 months.

I still wish I had the answer to whether a US State or other country can seize my soon to be newly acquired yacht until the previous owner or I have paid any outstanding taxes on it?

[Bluewaters2812]

Originally Posted by skipmac

Regarding sales tax, my understanding is the tax is levied against the purchase and not against the boat so there would not be a chance of a lien against the title.

Since FL has no property tax on boats I'm not sure how that would be handled. The greater concern would be if there was a bank loan against the boat which would certainly be a lien against a clear title.

Skipmac, what you say there makes complete sense to me and I agree. The next question then; how does one ensure that the seller is the clear owner and that there is no lien/bank loan on the boat ie: it has clear title and the owner is legally clear and entitled to sell the boat?

[Pete7]

There is one get out of jail card you might be able to play though, but I am not an expert. There is something about returning to the UK with possessions which don't count against you, chattels I think its called and allows you to return home with your worldy possessions without paying duty. You would want to do lots of reading up on this before hand though.

Pete

[Bluewaters2812]

Originally Posted by Jimbo485

The SSR in the UK costs 25 pounds, is good for 5 years and is recognised internationally. No need to take the boat to the UK. Just go online and use your credit card and wait for the rego docs to show up in the post.

Very easy.

Get the US rego deleted and keep the evidence of the deletion.

So what you are saying is that if I have the US registration deleted by the seller,go online and pay my £25.00, I can then fly the British flag, get a cruise permit for the USA and Bob's my Aunty? (Of course I would probably need to get a B1/2 visa)? The cruise permit is for 1 year but that is merely for the boat, is it not? I would still need a multiple entry visa and a cruise permit?

[skipmac]

Originally Posted by Bluewaters2812

Skipmac, what you say there makes complete sense to me and I agree. The next question then; how does one ensure that the seller is the clear owner and that there is no lien/bank loan on the boat ie: it has clear title and the owner is legally clear and entitled to sell the boat?

Disclaimer. It has been a while since I dealt with these specifics so take this particular advice as provisional.

If the boat is USCG documented I believe any liens against the boat will be registered with them. If state registered their should be an official title to the boat that should also list any lien holders.

However, documents can be forged so possession of a clear title document is not a 100% guarantee. With a documented boat I think you can contact the USCG documentation office to confirm the boat is free of liens.

In any case, it might be worth engaging a professional to deal with the title issue. I know in real estate you get title insurance with the purchase that will protect you as the buyer in case a claim is filed against the property in the future. Perhaps the same might be available for boats.

[Pete7]

Originally Posted by Bluewaters2812

So what you are saying is that if I have the US registration deleted by the seller,go online and pay my £25.00, I can then fly the British flag,

Yes, you just need a UK address and be one of her majesties subjects, registration is valid for 5 years or until you sell the boat.

Pete

[Bluewaters2812]

Originally Posted by skipmac

Disclaimer. It has been a while since I dealt with these specifics so take this particular advice as provisional.

If the boat is USCG documented I believe any liens against the boat will be registered with them. If state registered their should be an official title to the boat that should also list any lien holders.

However, documents can be forged so possession of a clear title document is not a 100% guarantee. With a documented boat I think you can contact the USCG documentation office to confirm the boat is free of liens.

In any case, it might be worth engaging a professional to deal with the title issue. I know in real estate you get title insurance with the purchase that will protect you as the buyer in case a claim is filed against the property in the future. Perhaps the same might be available for boats.

Thanks Skipmac. I wonder where or which Department one would turn to in order to check for liens etc in the case of a State registered boat because if you could do that it would quickly show up a forged doc?

[Bluewaters2812]

Originally Posted by Pete7

There is one get out of jail card you might be able to play though, but I am not an expert. There is something about returning to the UK with possessions which don't count against you, chattels I think its called and allows you to return home with your worldy possessions without paying duty. You would want to do lots of reading up on this before hand though.

Pete

Thanks Pete, yeah, I wonder whether once we have done our cruising etc that we shouldn't cruise to South Africa. We would then perhaps have that option you referred to or could sell the boat in South Africa. I must say though, I am not going to worry about things that far ahead lol. For now I want to focus on getting our world sold up so that we can get out there and do physical searches for the right boat. I also hope and wish that we will stay cruising until we have to be forced into a wheelchair and a home for the senile lol.

[MysticGringo]

I know some states in the U.S. do not enforce/require a state registration if the boat is USCG registered. Might be worth registering with USCG. But I'm not an expert by any means.

[bgallinger]

KDH...when you say 23% HST, wouldn't the HST be 13%?

[Bluewaters2812]

Originally Posted by MysticGringo

I know some states in the U.S. do not enforce/require a state registration if the boat is USCG registered. Might be worth registering with USCG. But I'm not an expert by any means.

I am not a US resident so registering with the USCG cannot be done.

[Bluewaters2812]

Originally Posted by bgallinger

KDH...when you say 23% HST, wouldn't the HST be 13%?

You have "lost" me with your posting?

[bobconnie]

Easy ! dont buy a state redisterd boat ! buy us Doc. vessel, and use a GOOD Lic. Agent to transfer title to your name in the country of your choice ! they do it all on line and "garentee" clear title, there are many you can get a list from any good boat broker. just athought