1. Probably have to be a new boat, in order to get the VAT identified separately on the Tax Invoice (or so recent as it could be established). 2. Then, one needs to charge VAT on the sales, while not being able to actually reclaim much against costs. You'd probably end up paying them more VAT on the quarterly basis, which would wipe out the benefit.

However, with the impending fuel duty hike in November, it might be worth having the boat as a business and getting it MCA Coded as a training/charter vessel, in order to get the fuel duty rebate.

Always deal with them in writing, so you have a letter to show them in six years time when they assess you having forgotten they said you could do it.

And, as a boat is classed as "a means of transport" there have been rulings clearly stating that you cannot reclaim the VAT on purchase if the vessel has any "personal use"

They will happily send you the scope and coverage guides, leave it up to you how to interpret them, and in six years time, tell you you were wrong and hit you with a Ł30,000 bill.

Best option is to get yourself elected as an MP, then you can run the boat as an expense (tax-payer pays for it for you) and you don't even need to declare it.

Sorry, am I being a bit sarcastic?

There are other options: Set up a Cayman Islands or Bahamian consultancy Company with nominee directors. Domicile the business in Alderney. Register the vessel in the Channel Islands, trade in and out of the UK.

If you make too much profit from the UK operations, then the Offshore company simply invoices you for consultancy and administration fees so that your UK trading has been at a loss.