I looked into it a couple of years ago. Basically, it's very difficult as it is seen as a tax dodge. To keep your tax affairs honest you have to charge yourself a charter fee including VAT when you use it.

I had a lengthy discussion with them about the VAT status and actually got nominal approval to buy a boat and reclaim the VAT, but I think the rules have got tighter each year. I think you'd really have to run the charter business yourself to be able to claim it is a genuine business and offering skippered charter would help. Just occasional charter with the usual use being by the owner would probably not convince them.

I did look at one boat that was second-hand, which was non VAT paid, where the owner seemed to have got it via his company and it had slipped under the radar of the then Customs & Excise. I got the distinct impression his accountant had urged him to get rid of it as quickly as poss.

I also chatted to someone who ran a boat for the entertainment of clients. He'd negotiated the tax liability before buying the boat so had managed to agree a substantially smaller figure than was originally suggested to him. He said if he'd simply bought the boat then negotiated, his tax liability would've been enormous.

Best of luck.