Brexit
Like most people in the UK, and probably the EU, we have had enough of the interminable Brexit debates. However, for recreational boat owners Brexit poses its own challenges. The upshot of this is that we've been watching closely the numerous deadlines that have come and gone because leaving without a deal could have significant financial implications depending on where your boat is lying. As a result, we've been on standby to dash across to Holland should a "no deal" be on the cards. Let me explain.
This meant, in the event of a no-deal Brexit, that we would have to decide whether to have the boat in the UK and thereby keep its UK VAT-paid status but loose is EU tax-paid stays, or have the boat in the EU27 and keep EU tax status but loose the ability to keep the boat in the UK without having to repay tax. This caused some angst. We are planning to take the boat to the Med next year so it would be nice to have the tax paid there; however, we would probably bring the boat back to the UK to sell it when the time comes so it would be good to have tax paid here! Also, being a Dutch boat well suited to the European waterways we feel the ability to sell her in Northern Europe would be advantageous. We were caught between a rock and a hard place by EU bureaucracy
However, some sense has since prevailed and the RYA...
"...asked HMRC on behalf of RYA members, if boat owners would be able to bring them back to the UK without VAT and import duty (if applicable) becoming payable.
Like most people in the UK, and probably the EU, we have had enough of the interminable Brexit debates. However, for recreational boat owners Brexit poses its own challenges. The upshot of this is that we've been watching closely the numerous deadlines that have come and gone because leaving without a deal could have significant financial implications depending on where your boat is lying. As a result, we've been on standby to dash across to Holland should a "no deal" be on the cards. Let me explain.
Until recently the RYA (www.rya.org.uk), which has been doing a great job of lobbying government on behalf of the UK's boating community and has been my main source of information regarding the implications and consequences of Brexit, advised that information received from...
"..the European Commission ... indicated that in the event of a no deal Brexit, boats lying in the EU27 at the time of Brexit would retain Union status and boats lying in the UK at the time of a no deal Brexit would lose Union status and have the status of UK goods."
This meant, in the event of a no-deal Brexit, that we would have to decide whether to have the boat in the UK and thereby keep its UK VAT-paid status but loose is EU tax-paid stays, or have the boat in the EU27 and keep EU tax status but loose the ability to keep the boat in the UK without having to repay tax. This caused some angst. We are planning to take the boat to the Med next year so it would be nice to have the tax paid there; however, we would probably bring the boat back to the UK to sell it when the time comes so it would be good to have tax paid here! Also, being a Dutch boat well suited to the European waterways we feel the ability to sell her in Northern Europe would be advantageous. We were caught between a rock and a hard place by EU bureaucracy
However, some sense has since prevailed and the RYA...
"...asked HMRC on behalf of RYA members, if boat owners would be able to bring them back to the UK without VAT and import duty (if applicable) becoming payable.
HM Government’s response is that it is still working towards a deal with the EU, but that plans have been made to replicate Returned Goods Relief (RGR) into domestic law in the event of a no deal.
RGR allows those resident in the UK to return with their belongings (including pleasure boats) to the UK without paying customs duty or VAT as long as the items have not been changed since their departure and follow the guidance given in the Notice 236 Returned Good Relief.
The UK Government has undertaken that RGR will be available in respect of UK pleasure craft not moored in the UK on EU exit day. They may return to the UK after the exit and be subject to Returned Goods Relief as long as the person responsible has evidence that the VAT was paid on the purchase of the boat in either the UK or the EU."
In effect, this means that as long as the boat is in an EU27 country on the date we leave it should be viewed as having tax paid in the UK and the EU - RESULT! This is not the whole story and anyone affected by this should check with the RYA/government website for the additional details and developments.
The way Brexit talks are(n't) progressing, we should be well and truly ensconced in the Med by the time we leave! Watch this space.
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