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(Articles of importance to Boating and if you come across any interesting, relevant and informative article please forward them on to me )

Pindar   02/10/2006 08:28:25 PM

17/11/06Oct 06

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www.plymyacht club.org.uk

Recently a yacht has been reported to have been detained for nearly an hour and questioned quite strongly for coming within 100 metres of a warship It is said that they were hailed but ignored the call which may be why they were detained ( obviously a bad move ). It is said that it includes warships anchored in the Sound so extra care may have to be taken especially when racing between warships and between them and the breakwater. Having said all that I cannot find any changes on the internet regarding any changes in the Dockyard regulations from 1999 which as far as I can find are 50 metres from the ships and dockside and 100 metres from submarines.

The new regime for ships' radio licensing

CYCC (Conference of Yacht Cruising Clubs) members will remember that Ofcom is preparing to issue lifetime licences for ships' radios from October 2006 under the following conditions:

•   Licences will be issued free-of-charge on-line (with a hard copy alternative for a fee), which the licensee will print and     keep a copy on the vessel.

•   Applications will declare the licensee's name and address and vessel callsign and MMSI number and identify the     number of sets on board by category.

•  The licence will remain valid until the ship's owner or equipment change, when application will be needed for an updated    licence.

•   OFCOM will remind licensees regularly by e-mail to keep their licences up-to-date and licensees must confirm the     details every ten years.

•   OFCOM will respect the Data Protection Act, except for making relevant details available to HM Coastguard solely for      Search and Rescue reasons.

•   Licensees must ensure that their sets are only used within the conditions of the licence and by persons with the     relevant marine radio operator's certificate.Full details of Ofcom's policy statement of 8 December 2005 are to be  found at     www.ofcom.org.uk.

The proposal to introduce a fixed penalty regime for minor offences

Licences will be enforced by publicity campaigns and inspections at marinas, but the Government starts out with a concern that 20% of equipment is probably unlicensed at present. Ofcom can prosecute for serious offences, with fines up to £5,000, but recognises that this is heavy handed for minor offences. It is therefore considering a scheme whereby people may opt for a fixed penalty rather than go to court, as set out at www.dti.gov.uk.The scheme would operate in the following way:

•   It will apply to minor offences.

•   It will be limited to offences that are self evident and do not require proof of motive.

•   It will include sail training and other small coded craft as well as leisure vessels.

•   The proposed fixed penalty for leisure boat users will be set at £100, in an effort to discourage use of the option to go      to court while avoiding being a derisory amount.

•   Ofcom will retain the right to prosecute through the courts in serious cases.

The Government argues that the scheme would allow a person the opportunity to settle an offence quickly without going to court and avoid prosecution and the possibility of acquiring a criminal record on conviction. From the Regulator's viewpoint, the scheme would dispose of offences quickly without the cost of a court case and saves the time of the Courts.The consultation paper asks eight questions, but the answers follow automatically if you conclude that, overall, the proposal appears reasonable.Clarification of the attitude of Ofcom and the meaning of 'minor offences'The consultation paper identifies two main types of offence that would be caught, namely not having a licence where one is required (unlicensed use) or using radio apparatus outside the terms of a license or any exemption from licence. The Hon. Secretary has corresponded with the DTI and Ofcom to better understand what is intended, identifying different scenarios.The officials have responded saying * This /s general advice and each case would of course be take n on its merits, but Ofcom are keen to continue to adopt a light touch and only prosecute as a last resort"

•  The assumptions behind the scenarios are that that use of a radio on board ship without a valid ship's radio licence    applicable to that radio would attract the penalty, that the licence will be presented in a similar form to Ofcom's present    Ship Radio Validation Document and that the Licence Terms Booklet would be as at present. The reply did not dissent     and said: w Where a licence is not held there is no basis for issuing a contravention notice (see below). A Fixed    Penalty Notice could be issued (but depending on the severity of the offence, Ofcom would retain the option to    prosecute without issuing a Fixed Penalty Notice."

•  The first set of scenarios suggested that a valid licence is held, but includes a VHP fixed set, which is shown on    inspection not to comply with all relevant type specifications; alternatively, whether there are means by which the    licensee can protect himself by identifying whether the set is type compliant; alternatively, the set is in fact type    compliant but is emitting spurious emissions unknown to the licensee. The reply said: "//? each of the scenarios it is    assumed that a licence is held, but that the terms of that licence have been contravened in some way. Under these    circumstances, Ofcom would be obliged by the Communications Act 2003 to issue a contravention notice (unless    harmful interference is being caused). The would give the licensee the opportunity to remedy the problem. Usually the    time period given is one month)."

•   An additional scenario was that a valid licence is held, which includes a number of categories of sets (MF/HF, radar,     EPIRB , etc.) but it omits the VHF fixed set. The reply was: * This scenario could be construed as unlicensed use.    However, if a licence is held but, as in your example, simply omits a piece of equipment, then our understanding is that the Ofcom investigating officer would try to determine if this was either a genuine mistake or clerical error. (The assumption here being that the user has already shown commitment to the process by having a licence, and should be offered the opportunity to include the additional equipment in the licence)."

VHF RADIO LICENCING

DISPOSAL OF OUT-OF-DATE FLARES

               Seen in a very recent Boating Magazine recently that beside the Coast Guards taking your old flares ( by appointment only as there is a legal rangle going on regarding them transporting explosives which has not been resolved as far as I know ). There is a Pains Wessex factory in Salisbury who will take them. They are called Chemring Marine and the factory is at Highpost close to the A303: telephone number 01722 411611. Apparently it is best to phone ahead and they are willing to  take them from you at the security gate

Navigating the stormy seas of tax

 Carol Chleboun and Alan Pearce report on the implications of yacht ownership.

     IF YOU are thinking of buying a dream yacht, be it a coast-hopping day boat or an oceangoing super yacht, registration, ownership and tax are all issues you should consider. Registration in Britain or a British dependent territory is governed by various Merchant Shipping Acts dating back to 1854 and entitles the vessel to fly the Red Ensign. Quite apart from the recognition and respect the flag still instils around the globe, British registration is considered to be the best evidence of a yacht's existence and her owner's clear legal title. And, of course, vessels are afforded protection from British Consuls and the Royal Navy.

As with any asset, owning a sizeable yacht in your own name does come with complications.Any uninsured loss caused by the yacht becomes a personal liability, which is one reason it is now commonplace for private yachts to be owned by limited companies. Crew payrolls, insurance, mooring fees and general running costs have to be dealt with and by holding ownership in a limited company, this can all be outsourced. A company also provides a degree of anonymity for the owner and may also have some tax advantages. Owners of any vessel conducting charter work should consider registering the boat in the name of a company, whereas owners of yachts kept for private use may be better off owning the vessel personally or through a limited liability partnership.

Value Added Tax is a particularly complicated issue for vessels in European Union waters and is an area that continues to develop season-by-season. This has led to a large amount of misinformation within the yachting industry, often with expensive ramifications

Anyone intending to use a private yacht within EU waters should be aware of the VAT implications:This is a topic full of loophole theories and wheezes

A}  The basic rule is that all private yachts owned or used by EU residents must be VAT-paid if they are to be used in. EU       territorial waters.

B}  Yachts owned and used by non-EU residents for private use may enter EU waters for up to 18 months on a Temporary       Import (TI) basis, VAT-free.VAT and pleasure yachts is topic full of loophole theories and exemption wheezes, much of       which is little more than bar-room talk There are, however, a couple of clear exemptions:

C}  Pleasure yachts built before 1985 and in EU waters on December 31 1992 are treated as VAT-exempt There are many      classics that will continue to enjoy this status for years to come.

D}  For commercial charter yachts operating hi EU waters, structures can be set up to mitigate or defer the payment of          VAT on the purchase of the vessel.

    Not wIthstanding this, in a number of circumstances there are proven schemes that can dramatically  reduce or defer the VAT burden.The EU guidelines are interpreted, administered and enforced by each country's tax authority, so local advice is always essential, In the UK the authority is HM Revenue & Customs. In practice it seems the interpretation of these regulations is largely down to the customs officials.

     An example of this is the recent acceptance by the UK-authorities of the "Lennartz principle'' which now allows for the initial recovery of VAT on yachts that are used partly for non-business and partly for business purposes. The VAT recovered in relation to the private use is then repaid to Customs over five years and, with careful handling, this can result in a significant cash-flow saving.Many companies specialise in yacht management and administration, dealing with such things as registration, radio licensing, crew hiring, payroll, budget control, insurance, refit management and chartering. Yacht ownership may remain the ultimate reward for many, but there can be expensive pitfalls. Many owners of large yachts may benefit from a company able to help them enjoy their boat, and should consider obtaining expert advice.

Carol Chleboun is a personal tax partner and Alan Pearce is head of VAT at chartered accountants Baker Tilly. Additional research by James Baker and Darren Hocquard of Jersey Yacht Management, part of Baker Titty Channel Islands. For more information email info@jym.co.je or telephone 01534 755130

Daily Telegraph 11th February 2006

VAT ON SECONDHAND BOATS

2/10/06

For several years the thorny issue of VAT on private craft has left many sailors unsure as to their boat's VAT status.

 

The RYA is pleased to announce that, as a result of constant pressure on the Government, through HM Revenue and Customs HMRO, a comprehensive, set of answers to some of the most frequently asked questions on this complex issue has been prepared in consultation with HMRC.

  Confusion has reigned for many years on the issue of VAT paid on private craft entering the EU and also on second-hand and newly purchased craft within the EU.

  Mandy Peters, the RYA's legal executive, said: 'In the past it was very difficult to gain any clarity on this matter from the government, so the publication of these FAQs following consultation with HMRC

means that we are finally able to give some comprehensive answers.'

The FAQs compliment the information currently available, such as advice from HMRC's National Advice Service

(0845 723 1110), with backup support from the Marine Unit of Expertise, HMRC's VAT notices and the RYA Legal Department's VAT information leaflets.

This will mean members have all the information they require to be able to make informed decisions on VAT issues affecting private recreational craft.

The FAQ's are available for members to download from the website. www.rya.org.uk or by contacting the Legal Department. Tel: 0845 345 0373.

LATEST  ON VAT ON OLDER BOATS SUPPLIED BY THE RYA - February 2008

Red diesel decision announced
01/03/08  

  The decision on red diesel for leisure boat users has finally been released. From November 1 we will continue to be allowed to have red diesel in our boat tanks, but we will have to pay the top rate of duty (54.68p) at the pump.

That means the price will be the more than £1 a litre.

Her Majesty’s Revenue and Customs (HMRC) has yet to issue a public statement but has released to the RYA its Impact Assessment which is available on www.rya.org.uk/AboutRYA/lobbyact/legalhomepagereddiesel.htm.

The key points are:

The fuel vendor will have the responsibility of differentiating between commercial users, who will remain legally allowed to use red diesel at the rebated rate (low duty), and leisure users, who must pay the top price.

However, an allowance for domestic use will be permitted. This means that those who use diesel from their boat tanks for heating or cooking will be able to claim some duty back. Apparently this is to be a matter of self-declaration. It has already been suggested that “There will be some very thirsty Eberspachers out there.”

Records of fuel purchases will have to be carried on board, to prove that the right duty has been paid for ‘marked’ diesel. The vendor will also have to keep accurate records, in order to declare the duty to HMRC.

It seems likely that outlets like marinas, which sell almost exclusively to the leisure market, will probably sell “white” diesel for simplicity’s sake. But there’s still an issue for British boats with red diesel in their tanks going abroad, where it is an offence to have it on board.

Dave Fitzgerald of HMRC confirmed that the core policy had been fixed but added that they would be working closely with RYA, BMF and other stakeholders to work out the detail of the declaration process and “apportionment of fuel for domestic use.” Following that consultation process, HMRC will produce comprehensive guidance.

Neil Northmore, the RYA’s government affairs advisor, said: “Since the decision was made to charge a higher rate of duty on red diesel, which required a new regime, we have been working hard with HMRC to find a sensible solution for all.

“Our main concerns were availability and safety, and we were aware that there was a danger that some retailers in more remote areas would simply not bother selling to pleasure boats on the premise that it would be more trouble than it was worth to distinguish between private and commercial craft, and then process the paperwork.

“The onus will be on the owner of the boat to self-declare whether they are a commercial or recreational vessel and pay the appropriate rate of duty at the pump. Anyone falsely declaring they own a commercial vessel may be subject to enforcement action by Her Majesty’s Revenue and Customs.”

Howard Pridding, executive director of the British Marine Federation, said: “While no-one is going to pretend that the duty increase on red diesel is a good thing, we are pleased with how HMRC has managed the consultation process and the position that they have finally adopted.

“There were real fears that the marine industry would be hit with significantly increased costs and administrative burdens but HMRC has listened to our concerns and come up with a system which the BMF feels able to support.

“The proposed system spreads the burden between boaters and the industry in a fair way and hopefully will ensure that, with the industry able to keep the existing infrastructure, boaters will still be able to access fuel in convenient locations.”

“This solution ticks many of the boxes for recreational boaters. Availability will not be affected, which gets rid of the safety concern, and the potential for reams of paperwork or even registration of craft, to identify commercial vessels from recreational ones, has been minimised” Neil added.   

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RED DIESEL LATEST

Taken from an Interesting Sailing Web Site “Mainsail” which has relevant articles covering many aspects of sailing. :- www.themainsail.com

                                                                                                                                                                                          diesel

                                                                                                                                                                                           VAT

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