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AuthorMessage
daibark
daibark

Posted: Sat Jan 15, 2011 3:23pm

Post Subject: vat exemption

Hi folks, I am trying to find out how I can get a widebeam boat built to live on without having to pay vat. I have asked several builders but am not reassured by their vague answers and the vat people are even less helpful, referring me to various rules etc which I am confused by to say the least! I am told that I can do it if I dont have any means of propulsion but I need to be able to move around with my work so that is a poor option! please help guys do any of you know the answer to this dilema?

Tony-B
Tony-B

Posted: Sat Jan 15, 2011 3:47pm

Post Subject: vat exemption

For a boat to be VAT free it must be what HMRC class as a qualifying ship and that involves an archaic calculation based on the amount of cargo it could in theory carry. Although the calculation is about volume it is expressed in tons. It uses the height to the gunwale as one dimension and this means that a narrow boat can never qualify and it may be impossible for shorter wide beams to qualify. If you manage to make a longer wide beam qualify it will probably have very high hull sides and short cabin sides making it look a bit odd. The fact that it will be a one-off boat that needs to have its scantlings (plans) checked strength and compliance with the RCD probably makes it very expensive to build. Also, if the HMRC decided it does not qualify itâs the builder who would end up in court or paying the VAT. I would caution you that even if you manage to get it done having no proof of VAT being paid may make reselling or use on the continent difficult. I think your best plan is to contact the HMRC and get their opinion and regulations. They are NOT people to mess with and they do not seem to be bound by any requirement to prove their case before becoming very heavy. I would also ask if you are aware that a wide beam boat can not get between the southern, eastern and northern wide beam waterways unless it goes by road or sea. Tony Brooks


Posted: Sun Jan 16, 2011 10:28am

Post Subject: vat exemption

Hi, Just a thought, perhaps you could find a second hand boat that suits your requirements, it is a buyers market out there & I am sure you would save much more than 20%, 3o% should be possible. Get your dealing hat on, Good luck, Mark.

pablodog
pablodog

Posted: Tue Jan 25, 2011 9:46pm

Post Subject: vat exemption

hi David, Don't know if it's of interest but Amber Boats at Evesham actually advertise the vat free status of their wide beam boats. There are specific rules regarding build spec and narrow beam definately don't qualify, as I have already enquired with both Amber and HMRC after I purchased a nb from them. Wide beams have to have a certain tonnage to qualify but this is not the gross tonnage of the boat it is some calculation of cargo carrying capacity (if it did theoretically carrycargo) May be worth calling their sales guy called Noel.

cjdean
cjdean

Posted: Mon Sep 12, 2011 11:19am

Post Subject: vat exemption

Simple answer... The boat must be at least 15 tonnes. To work this out see below... L (m) x B (m) x D (m) x 0.16 This is all on the HMRC site: http://customs.hmrc.gov.uk/channelsPortalWebApp/ channelsPortalWebApp.portal?_nfpb=true&_page Label=pageLibrary_ShowContent&id=HMCE_CL_000 169&propertyType=document

cjdean
cjdean

Posted: Mon Sep 12, 2011 11:25am

Post Subject: vat exemption

Oh, and the height is from the base plate to the gunwale... not the full height of the boat!

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