UK Citizen buying boat in the US

[Mitch C]

Morning all,

Hope this is the right place for this question?
In the next 6 months or so we are looking to buy the "retirement" boat and start our slow circumnavigation, but there is a catch.

There are zero suitable boats (hasn't been for the last 12 months) available in the UK, so we are starting to look to the EU/US where there are a few.
Yes we could stump up the 20% vat if we bring it back into the UK, but what if we don't bring it back here?

How does a UK citizen go about buying a boat in the US and then starting the trip from there? How does the registration work and will it cause complications when checking into the various countries.
Spent a fair bit of time on the web searching for answers, but nothing really gives a clear answer for our situation.

Thanks in advance for any advice.....hopefully there is someone out there who has done this.

Mitch C.

[boatman61]

Buying a US registered boat in the States is no big deal.
I bought one in Oriental, NC from a private seller so no broker was involved.. the only problem I had was the somewhat primitive banking system that had difficulty getting their heads around an International Bank Draft.. what should have been a simple 5 day transfer morphed into a 7 week delay as the Rustic system struggled to grasp international banking.
The final transfer was in the bank managers office with the bill of sale being witnessed and notarised/stamped by the manager.
UK Registration is simple enough, SSR or Lloyds, just follow the same online process as you would at home.
Departing the States depends on the length of your visa and clearing out is best done at the nearest C&I centre.. in my case Morehead City, NC.
You will have no trouble in foreign ports.

[Steel sails]

Fairly simple.
You need to apply to deregister from USCG or US State depending on how it’s registered then apply for a UK small ships.
There are companies that will do this for you.
I will look up who I used and add it to this post later
As per boatman’s post above this assumes no financing.
If it’s financed then you have the banks to deal with.


Regards
Paul

[aqfishing]

You can buy your yacht anywhere, deregister it and register in the UK.

We are in South Africa, bought a yacht from Moorings and registered in Jersey.

We used Julia Buesnel from Blue Water Supplies Limited to do the registration. Great service and affordable.

[Mitch C]

Thanks for the quick replies - no finance involved so that's good news.
Brexit/Schengen has completely messed up our plans. Originally it was buy the boat in Europe and bring it back to the UK for a mini-refit (if required), do a lap of the UK to prove the boat and then head to the Baltics for a season before the usual med-visit and across to the Americas and Pacific.
It's now probably easier to buy the boat in the US and hope that EU can come up with some appropriate long stay visa some time in the future so we can do the Baltics in a few years time
Also the bringing the boat back to the UK & VAT thing is making the US kicking of point more attractive.

I'll keep scouring the classified hoping a UK boat comes up....

Fair winds,
Mitch.

[Wayne Bostow]

It seems to me that the responses so far assume that ownership is clear and that a sale is legal. Frankly it is my experience that this is seldom the case. Try to personally verify prior ownership, including ex-wives, DEA, IRS, deceased fathers, etc., Then find out who has worked on the boat, and where it has been berthed. Make sure they don't claim money owed. There are fifty states in the USA each with its own rules, liens, and confiscation procedures. A title from a state or the registry from the Coast Guard may shield you from fraud, but not necessarily owing money the previous owner or the one before, or the one before that failed to pay. All known agencies are months or years behind logging in any info. Buyer beware. Be suspicious. On the other hand, if you can purchase and high-tail it around the world, it's unlikely that you will be tracked for a lien. Good Luck!

[donradcliffe]

A US documented vessel will have a cleaner title than a state registered vessel, but I wouldn't let a fear monger prevent you from buying either one.

[Tin Tin]

Here is a potential scenario. Get a US B1/B2 visa whilst in the UK - will give you 6 months at a time (12 if you can give a good reason) for 5 years.


Fly to USA. Buy a boat on East coast somewhere between Maryland and Florida at end of summer season - it might take a month to settle. Find a yard/marina that will let you live aboard whilst you work on it. Transfer rego to UK. In autumn sail to Bahamas - spend the winter month there - enjoy life, sail back to USA for Hurricane season, on entry get a US cruising license (12months) for the boat - about $20, your Visa will let you back in multiple times, head north to say Maryland/Virginia and continue working on the boat and repeat. There will be no US state or federal taxes whilst on your cruising license and you will only need to pay VAT on return to UK.


If you feel uncomfortable doing the paperwork etc you can engage a reputable buyers broker in the USA and they will get their commission from the Vendor or split with vendor's broker. Money is then handled through broker trust accounts, and the contract will usually stipulate process of de-registration for the vendor and any other terms appropriate for the transaction.

[Mitch C]

Originally Posted by donradcliffe

A US documented vessel will have a cleaner title than a state registered vessel, but I wouldn't let a fear monger prevent you from buying either one.

Agree, I'm sure we can take that negate that risk with suitable checks

[Mitch C]

Originally Posted by Tin Tin

Here is a potential scenario. Get a US B1/B2 visa whilst in the UK - will give you 6 months at a time (12 if you can give a good reason) for 5 years.


Fly to USA. Buy a boat on East coast somewhere between Maryland and Florida at end of summer season - it might take a month to settle. Find a yard/marina that will let you live aboard whilst you work on it. Transfer rego to UK. In autumn sail to Bahamas - spend the winter month there - enjoy life, sail back to USA for Hurricane season, on entry get a US cruising license (12months) for the boat - about $20, your Visa will let you back in multiple times, head north to say Maryland/Virginia and continue working on the boat and repeat. There will be no US state or federal taxes whilst on your cruising license and you will only need to pay VAT on return to UK.

If you feel uncomfortable doing the paperwork etc you can engage a reputable buyers broker in the USA and they will get their commission from the Vendor or split with vendor's broker. Money is then handled through broker trust accounts, and the contract will usually stipulate process of de-registration for the vendor and any other terms appropriate for the transaction.

Hi TInTin - I think you've just described exactly what we've been thinking about doing. Having someone else describe it makes me much more comfortable.
Coming back to the UK - We might skip that and use Ireland as a transit point prior to the Baltics...feckin' Brexit

[Cloroxbottle]

The only other angle I might add to this for future reference is if you're not sure you are heading back to the UK, think about using the Cayman Ships Registry. You can still fly the red ensign, and always transfer the registration back to the UK and pay the tax if that's what you end up doing.