Yacht Forum UK

As some of you know I've been in the process of selling my Westerly Centaur (now sold) and buying a larger yacht as a first liveaboard.

I found a suitable vessel and got the ball rolling on making a purchase. I paid a surveyor and a solicitor, and bought a berth in a marina - I sold my existing vessel and got the money ready in my bank account...

All based on the fact that the vendor said:

Yes, VAT is paid and we have documentation for this.
Yes, we have all of the legal documents you will need.

So when my solicitor tells me not to buy the vessel in question because:

No, VAT is not paid, or at least it cannot be proven.
No, they do not have all of the documents you will need.

You can imagine my annoyance.

Aaaagh!

Bad news Bob, but at least he saved you from finding out later, when it could have cost an arm and a leg

Very true, very true. At the mo the vendor is running around chasing everything up so it's not definitely fallen through. We'll see in Jan I guess.

Would you have had the same problem if you purchased your larger boat from overseas and then registered it back in UK???

Yes, I think so. If you buy abroad then import, I think maybe VAT is definitely due - don't have the RYA guidebook to hand at the mo so can't confirm this.

Suppose you purchase abroad, private sale everyone is happy. Receipt given, money paid, sold as is were is and you sail your boat home. How on earth does HM Customs and Excise know (unless you tell them) how much you purchased the thing for, what condition it was in when you got it etc, etc. You could whip up a receipt for a token amount and say it was a wreck, which you have done up!!

Couple of problems with that idea:

1. VAT is payable to customs based on the value of the boat at the time of importation - if you cannot prove that VAT was _ever_ paid on the vessel somewhere else.

2. Fraudulently creating a receipt for the purchase is against the law - defrauding HMRC is not a good idea!!

3. Most vessels of a reasonable value are registered on the shipping register and so their ownership history is recorded.

Agree with all your points, will leave it to my accountant to sort it all out. He should be jailed for how much he defrauds me for!!

But seriously if you come across a boat that you really like, but some minor paperwork is missing, would you take the risk? I can understand if you say no, but personally I probably would.

For someone who has not purchased a boat before, what is the procedure, what are the does and don`ts???

Is there a standard cost for a broker, as with a property purchase??

Get a copy of this:

http://www.amazon.co.uk/RYA-Buying-Seco ... 0954730135