I have seen an ex vat paid boat for sale here in the uk.
According to the agent it's ex vat because it's done some charter, now I know if I bought it and kept it for private use I'd have to pay the vat as soon as I bought it.
I have thought about buying it and using a skipper to do some occasional chartering to pay for it's upkeep. So do I.
Have to create a charter company and register the company, obviously it would have to be limited, obviously show accounts to hm revenue etc, be fully insured and coded.
The questions I'm not sure on is, would I have to pay the hm for private use which would be more time than chartering?. What other tax implications would I come across?.
Would I just be better to buy the boat at the right price and pay the vat, then forget the charter company as it's probably just a way of avoiding the day I'd have to pay the hm.
If say I bought the boat for example 220k and pay the 20% vat, or could I legally buy it, not pay the vat, do the chartering for a couple of years then sell the boat at it's Market value say 180k and then pay the vat on the 180k? Is that legal?
Or am I just better to buy a uk boat that's vat paid.