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Client Case Study

Yachting Case Study

Below is one of several solutions we have for yacht owners that wish to mitigate their VAT exposure and operate in EU waters.    

Client situation

Mr S is a ultra high net individual and is resident in the United Kingdom.  Mr S is purchasing a 65 metre Feadship for €45 million which will be used privately in the Mediterranean for approximately 6 months of the year.  The seller is required to charge VAT on the sales price at 20% equating to €9 million. 

Solution

Oxtons will arrange for a tax efficient ownerhip structure to be established that will lease the yacht to Mr S.  VAT will only be payable on the rentals whilst the yacht is operating in EU waters.  No VAT will apply on the lease payments for the period the yacht is outside EU waters.  Consequenty, Mr S is able to mitigate a significant proportion of the VAT liability due.  This solution is suited to clients of all yacht values above €1m and with an ownership period of 5 years or less.  

 

yacht cost

€45M

VAT due @20%

€9M

VAT costs p.a.

€202k

savings

€8.8m

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queens house, queens avenue, douglas, isle of man im1 4da
+44 1704 321005
hello@oxtons.com