Yacht and aircraft chartering via limited company

I've been asked to do a bit of research on the subject of chartering expensive "boys toys", like yachts, jets, helicopters and the like.  It's actually a yacht, but I want to address the wider subject too.

So far I've come across VBN46000 and VBN74600, as well as VTRANS110340 and VAT Notice 744C. Thank you Google.

I'm comfortable on the VAT issue in principle.  It has to be a business.  It ought to have a view of profit (which will then be liable to CT, but we'll get capital allowances).  I'm happy so far.

There will be benefit in kind implications if the asset is placed at the disposal of any employee, director or shadow director, and a possible benefit distribution if it made available to a participator in a close company who isn't an employee, director or shadow director.

So how? How do we make sure it's a business? How do we avoid it being "at the disposal" of these people other than when they're using it?

Presumably there are businesses out there that will, "manage" the asset as agents?  Does that deal with both issues?  Is there a VAT self-supply or private use adjustment if these people use it for their private purposes?  What if it's a yacht and the company uses it for entertaining? or promotion?

I realise that there would need to be a capital allowances adjustment for entertaining use.

Does anyone have any experience that can please (a) answer some (or even all) the above questions? and/or (b) identify any issues that I haven't touched on?

And does anyone know of any books (reasonably recent, because I know that the VAT position has been developing in recent years) that cover the subject?

Thanks.

G

Comments
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I'll answer the easy one

BKD |
BKD's picture

Still on yachts

alastairgott |

Thank you both

George Attazder |
George Attazder's picture

The usual

The Innkeeper |

Ship definition?

alastairgott |

Are you ACCA?

alastairgott |

Yes

George Attazder |
George Attazder's picture

Benefit in kind might attract attention from HMRC

Glennzy |
Glennzy's picture

BIK can be avoided by arms length charge

Democratus |
Democratus's picture

Thanks for the further responses

George Attazder |
George Attazder's picture

Vat wise we are saling into a

shaun king |

Thanks Shaun

George Attazder |
George Attazder's picture

Benefits in kind

hiu612 |

Benefits in kind

hiu612 |

Thanks Hiu

George Attazder |
George Attazder's picture

.

blok |
blok's picture

Duh!

George Attazder |
George Attazder's picture

Memos to self

George Attazder |
George Attazder's picture