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  1. #1
    Join Date
    Apr 2019
    Posts
    8

    Default buying a boat: private vs limited company?

    Dear all, sorry for the lame question, however, I hope someone might be able to point me in the right direction. Me (UK citizen) and my relative (Ukraine citizen) have decided to jointly buy and share a second-hand sailing yacht (under £100K price tag, British Registered, VAT paid) to sail UK and Mideterenian waters mostly. What is the best way to structure this deal to be able to use this boat independently from each other if needed?

    If I register this boat under my name, what paperwork will be needed for my relative to use this boat in Mideterenian waters without me being present aboard? My relative is not comfortable having his name on the UK register (together with my name) due to him having to declare any overseas ownership back home and thus having to pay hefty wealth tax every year which over years may add up to become as high as the cost of the boat.

    If we buy this boat under BVI limited company name (someone suggested to register one), what paperwork will be needed for me and my relative to use this boat worldwide?

    thanks
    Alex

  2. #2
    Join Date
    May 2007
    Location
    Itinerant. On an adventure!
    Posts
    2,811

    Default Re: buying a boat: private vs limited company?

    Try Malta, has some advantages, bit subtler. But, company owned boats can attract "attention".
    What happens if you and mate fall out?
    Describe how the deal unravels in that case or if one of you dies or gets divorced.
    Gwylan, a settee with a sail

  3. #3
    Join Date
    Mar 2010
    Location
    Ammersee, Bavaria
    Posts
    4,678

    Default Re: buying a boat: private vs limited company?

    Quote Originally Posted by AlexKT7 View Post
    Dear all, sorry for the lame question, however, I hope someone might be able to point me in the right direction. Me (UK citizen) and my relative (Ukraine citizen) have decided to jointly buy and share a second-hand sailing yacht (under £100K price tag, British Registered, VAT paid) to sail UK and Mideterenian waters mostly. What is the best way to structure this deal to be able to use this boat independently from each other if needed?

    If I register this boat under my name, what paperwork will be needed for my relative to use this boat in Mideterenian waters without me being present aboard? My relative is not comfortable having his name on the UK register (together with my name) due to him having to declare any overseas ownership back home and thus having to pay hefty wealth tax every year which over years may add up to become as high as the cost of the boat.

    If we buy this boat under BVI limited company name (someone suggested to register one), what paperwork will be needed for me and my relative to use this boat worldwide?

    thanks
    Alex
    This bit in bold I can answer ... you need a simple authorisation of use, signed by the boat owner identified on the registration papers. The example below which I use is in German, English and Croatian .... simply translate to the native language of your cruising ground.

    Mine is also for a boat registered on Part 1 of the UK Ships Register (Where ownership is apportioned in 64 shares 32/32 for joint ownership). If you are a UK resident then why not register on Part 3 (SSR - Small Ships Register) which proves nothing about financial ownership (a boat used solely in the UK doesn't actually have to be registered anywhere.) - the ownership contract can be drawn up seperately and no-one ever needs to see it other than you, your relative and a lawyer.

    Here's the usage authorisation ...

    Vollmacht
    Authorisation
    Punomoć

    Schiffhalter: (Your name and address here)
    Owner:
    Vlasnik Jahte:

    Schiff:.........Bavaria 36, „BoatName“
    Yacht: .........O.N. XXXXXX, Port: „PortName“
    Jahte:..........HIN: DE-BAVDXXXXX (Hull Identification No.)

    Die aufgeführte Person: (Authorised users name and address)
    Authorised user:
    Osoba navedena:

    Geboren am: (Date of Birth)
    Date of birth:
    Datum rodenja:

    ist berechtigt, das Schiff “BoatName”, amtliches Kennzeichnen XXXXXX, für Fahrten in Kroatien und Ausland zu nutzen und notwendige Zollformalitaten zu erledigen.

    is authorised to use the yacht „BoatName“, Official Number XXXXXX, for travel in Croatia and in foreign countries and to complete all necessary customs formalities.

    je ovlašten koristiti jahtu “BoatName”, službeni broj XXXXXX za putovanja u Hrvatskoj i inozemstvu i dovršiti sve potrebne carinske formalnosti.

    Gültig von: (Dates when he is authorised to use it)
    Valid from:
    Vrijedi od:

    (Owner signature goes here)
    ... and check with your insurance company to ensure your relative is covered.
    Last edited by Baggywrinkle; 24-05-19 at 08:41. Reason: Corrected - error spotted by macd
    The best argument against democracy is a five-minute conversation with the average voter.

  4. #4
    Join Date
    Jan 2004
    Location
    Bricks & mortar: Italy. Boat: Aegean
    Posts
    10,431

    Default Re: buying a boat: private vs limited company?

    Quote Originally Posted by Baggywrinkle View Post
    Mine is also for a boat registered on Part 1 of the UK Ships Register (Where ownership is apportioned in 64 shares 32/32 for joint ownership). If you are a UK resident then why not register on Part 2 (SSR - Small Ships Register) which proves nothing about financial ownership (a boat used solely in the UK doesn't actually have to be registered anywhere.) - the ownership contract can be drawn up seperately and no-one ever needs to see it other than you, your relative and a lawyer.
    Good advice.

    Part one also allows two people to jointly own the boat, i.e. so each jointly owns all 64 shares. This page explains the difference: https://www.rya.org.uk/sitecollectio...-OWNERSHIP.pdf
    The main feature of joint ownership is that full title automatically passes to one owner on the death of the other, so especially suited to such as married couples.

    And I think you meant "Part 3" for SSR.
    All epigrams are false

  5. #5
    Join Date
    Mar 2010
    Location
    Ammersee, Bavaria
    Posts
    4,678

    Default Re: buying a boat: private vs limited company?

    Quote Originally Posted by macd View Post
    .... And I think you meant "Part 3" for SSR.
    Yes I did, thanks for spotting the mistake ... now corrected.
    The best argument against democracy is a five-minute conversation with the average voter.

  6. #6
    Join Date
    Apr 2019
    Posts
    8

    Default Re: buying a boat: private vs limited company?

    thanks a lot for your feedback, however SSR Part 3 would not work as my relative lives abroad full time. Does anyone have experience with registering under Limited company name and I guess Part 1 option?

  7. #7
    Join Date
    Dec 2007
    Location
    S.W. France
    Posts
    7,450

    Default Re: buying a boat: private vs limited company?

    Not recent, but a friend who is a German national bought a British part 1 reg boat and used a Gibraltar company. He carried authorisation to use it. You and your friend could own the Gib company, but remain anonymous.
    In your case, could you not reg it under Part 3, as you are entitaled, and authorise your friend to use it? As Baggy says above.

  8. #8
    Join Date
    Feb 2014
    Location
    The Northern Powerhouse
    Posts
    2,613

    Default Re: buying a boat: private vs limited company?

    Take care with UK corporation ownership if you are a UK resident. You may be required to pay a benefit in kind tax charge for using company assets

  9. #9
    Join Date
    Jan 2007
    Location
    Devon
    Posts
    662

    Default Re: buying a boat: private vs limited company?

    A Ukrainian citizen cannot be a qualified owner of a British registered ship. The ship can only be registered on Part 1 if the qualified owner or owners (in this case AlexKT7) own at least 33 shares. See MSF 4727 section 2A https://www.gov.uk/government/public...essel-msf-4727

  10. #10
    Join Date
    Apr 2018
    Location
    Mooring, Faro
    Posts
    1,406

    Default Re: buying a boat: private vs limited company?

    Quote Originally Posted by andygc View Post
    A Ukrainian citizen cannot be a qualified owner of a British registered ship. The ship can only be registered on Part 1 if the qualified owner or owners (in this case AlexKT7) own at least 33 shares. See MSF 4727 section 2A https://www.gov.uk/government/public...essel-msf-4727
    Yes but a non UK resident can have a financial share/loan in the boat, it just can't be registered in his/her name.

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