Carol Chleboun and Alan Pearce report on the implications of yacht ownership
If you are thinking of buying a dream yacht, be it a coast-hopping day boat or an ocean-going super yacht, registration, ownership and tax are all issues you should consider.
Registration in Britain or a British dependent territory is governed by various Merchant Shipping Acts dating back to 1854 and entitles the vessel to fly the Red Ensign.
Quite apart from the recognition and respect the flag still instils around the globe, British registration is considered to be the best evidence of a yacht's existence and her owner's clear legal title. And, of course, vessels are afforded protection from British Consuls and the Royal Navy.
As with any asset, owning a sizeable yacht in your own name does come with complications. Any uninsured loss caused by the yacht becomes a personal liability, which is one reason it is now commonplace for private yachts to be owned by limited companies.