Navigating the stormy seas of tax

[PartTimePongo]

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.

Sunday Tory

 

[THEONLYGASMAN]

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.

Sunday Tory

Hey just do what other do, small dingy up the Tamar (plenty of them yacht things moored there) cut all the lines, throw the marine alarm over the side(nobody takes any notice of them anyway same as car and house alarms) sail it across to France on the engine(don't want to dirty the sails for prospective buyers) sell it to Mr Frog or some Spanish boat lover (who does not give a toss that it is your pride and joy) for a bargain. Better still just rip out the engine by cutting around it with a saw, that really hacks people off. These things happen all the time. Do you really want to own a liability to insurance companies, putting up everybody elses insurance premiums.

 

[Greenie]

Messing about in boats-heheh!

Tax-----if you take a boat abroad there is a form required to satisfy the relevant customs and revenue that the boat is not going to be flogged or if it is then you pay the taxes Vat or whatever.

Small ships register is a data base and it isn't mandatory to put your boat on the list . If you do require to include it then it is inspected and given a boat number --carved into one of the deck beams or in the case of a GRP boat its plated-like a vehicle chassis number ID.

Insurance-----------not mandatory but as the man says you will be liable for any damage you cause or the boat causes if it breaks adrift from its moorings etc. Also passenger and crew third party liability will be yours to pay out if anyone does get hurt/injured/lost.

Flying the Red Ensign -----------if you are British fly it but remember the rules .

Lots of rules now about pleasure boats /yachts and Safety at sea . The marine safety agency can bring you to court if you get into difficulties at sea and you haven't got the prescribed minimum life saving equipment.

Its still a good pastime though!!

 

[Nutty]

Or just join the Royal Navy and they will cover all your boating costs.

Be quick though cos they are fast running out of Boats etc.

Nutty

 

[geoffrey]

One of the best kept secrets in the RN is the free boat "hire" from HMS HORNET (or whatever they're called now - JSTSTATATATAC or something) - a beautiful 42ft sloop for nothing, and your unit travel budget will pay you CILOR to pay for the booze!

 

[Seadog]

Greenie wrote

The marine safety agency ......

The Maritime and Coastguard Agency. They've not been the MSA for years. Keep up Greenie.

MCA

If your yacht is in foreign waters/harbours you'll also be liable to inspection by the 'port state's' regulator.

 

[Greenie]

Thanks Seadog the march of progress!! Name changing !!

 

[Seadog]

Greenie wrote

Thanks Seadog the march of progress!! Name changing !!

Government SOP. Department crap? Change the name!!

They are still crap! :wink:

 

[hammockhead]

If I recall correctly if you are a Commonwealth citizen with a boat/yacht you can fly the Red Ensign even if your boat isn't registered.

 

[Greenie]

Yachts can if registered under certain rules of the Merchant shipping act wear a defaced Blue ensign ----usually with the yacht club logo .


I have at one time seen a yacht wearing the White ensign --it belonged to the Royal yacht squadron ????????????????? Name something like that.

Lots of etiquette rules about wearing flags /ensigns on yachts.

 

[PartTimer]

Yachts can if registered under certain rules of the Merchant shipping act wear a defaced Blue ensign ----usually with the yacht club logo .


I have at one time seen a yacht wearing the White ensign --it belonged to the Royal yacht squadron ????????????????? Name something like that.

Lots of etiquette rules about wearing flags /ensigns on yachts.

A full list of who can fly defaced red and blue ensigns, the white ensign and the blue ensign can be found in the Navy List, Section 6 'YACHT CLUBS USING A SPECIAL ENSIGN' and Section 7 'ROYAL NAVAL RESERVE AND OTHER VESSELS AUTHORISED TO FLY THE BLUE ENSIGN IN MERCHANT VESSELS (FOREIGN OR HOME TRADE ARTICLES) AND FISHING VESSELS.'