News

UK boat owners penalised by HMRC over Brexit

Background

HMRC has caused controversy amongst the many thousands of British yacht and motorboat owners that keep their boats in EU countries by introducing a penal interpretation into UK tax law requiring them to pay VAT a second time on the value of their boats when they bring them into UK waters.

Boats in EU may have to pay UK VAT on return

The CA understands that HMRC may be considering changing the interpretation of VAT rules so that, after the Brexit transition period, all boat owners established in the UK whose boats have been in the EU for the last three years or longer will pay VAT for a second time if they want to bring their boats back to the UK.

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