Not all plain sailing
FOR most people, sailing conjures up an image of being at one with the elements and having the freedom to go where you please without all the rules and regulations that govern life ashore. The UK is, in fact, one of the few countries in the developed world where sailing is relatively unregulated. Sadly, this situation looks set to change with ever more proposals on the government’s agenda for new legislation covering sailing vessels.
On July 1, 2002, following extensive consultations with the Royal Yachting Association (RYA), the national representative body for all forms of recreational boating under power and sail in the UK, a reduced number of regulations from Chapter 5 of the International Convention of the Safety of Life at Sea (SOLAS) convention were allowed to be applied to recreational boat users. The concession seemed a fair one as the regulations were clearly laid out, easy to conform to and, most importantly, represented good seamanship principles that a conscientious sailor should observe in any event.
However, the government now wants to extend ‘drink driving’ laws to all ships, a term which covers any vessel used in navigation, whether under power or sail. As far as privately owned and used recreational craft are concerned, there is no evidence to support the introduction of breath testing, nor any evidence that drunk sailing is a recognised problem on a scale sufficient to justify the extension of legislation to cover the leisure sector.
Whilst the RYA strongly deplores the abuse of alcohol by leisure craft users, it feels that any legislation would be wholly inappropriate for speed limited vessels on inland waters or small sailing crafts on any waters. Instead, legislation should be limited to specific areas where alcohol abuse and fast power craft are a problem, with new byelaw-making powers being made available to lake, beach and harbour authorities.
Wind farms and rotor blade collision risk
Whilst harnessing the wind as a renewable and environmentally friendly source of energy is to be applauded in principle, in practice the offshore wind farms are proving to be extremely hazardous for sailors. Whilst no minimum rotor height was laid down for the first generation of wind farms, proposals earlier this year by the Department of Trade for the next generation do include minimum height specifications. However, whilst the majority seem to be in the region of 20-25 metre clearance above (flat) Mean High Water, the lowest one proposed so far is at Gunfleet Sands, with a mere 14 metres. Estimates by the RYA show this would create a potential collision with over half the recreational yachts in the UK should they get into trouble and end up in this area. However, the Secretary of State’s comments on navigational issues on those proposals are “the risk to navigation is not significant”.
So far, Scroby Sands, Kentish Flats, Rhyl Flats, North Hoyle, Barrow and the Solway Firth have been given clearance for wind farm development, with no limits on how many turbines will be used. Therefore, there could be hundreds of turbines per site rather than the thirty prescribed in the first generation. The RYA believes that the threat to recreational yachts can be minimised by specifying a minimum rotor height clearance above flat sea level (mean high water springs) of 22 metres. For more details on this issue please refer to the British Wind Energy Association’s website www.offshorewindfarms.co.uk
VAT and acquisition of new boats
HM Customs & Excise have issued a new guidance note relevant to anyone obtaining a boat in a member state of the EU with the intention of bringing it into the UK and vice versa. In the EU, most goods are charged with VAT in the country in which they are purchased. However, for a new boat, VAT will be due in the member state of destination if:
- it falls within the definition of ‘New Means of Transport’, and
- it is sold to a customer who intends to take it to another member state.
A ‘means of transport’ is a boat more than 7.5 metres (approximately 24.6 feet) long, intended for the transport of passengers or goods. A vessel will not be considered to be new when more than three months have elapsed since the date of its first entry into service and it has, since its first entry into service, travelled under its own power for more than 100 hours.
‘First entered into service’ means the date the boat was delivered from its manufacturer to its first purchaser or owner, the date it was first made available to its first purchaser or owner, or the date it was first taken into use for demonstration purposes by the manufacturer. Private individuals or business entities must notify HM Customs & Excise within seven days of the boat’s arrival in the UK or its acquisition, whichever is the later. Failure to do so may result in financial penalties.
If a boat is brought into the UK from another member state, no UK VAT will be payable if:
- it is no longer a 'New Means of Transport' as defined above and
- VAT has been paid on its purchase in the member state of supply.
Prolonged absences from the EU and VAT
The German Ministry of Finance has confirmed that EU-flagged yachts that have been absent from the EU for over three years must pay VAT on the assessed value of the boat on its return. This rule applies even to vessels that have already paid VAT in the EU. So, unless a cruising yacht has been outside the EU for “commercial reasons” i.e., on charter business, one way of avoiding the double charge is to call in at an EU country or any of its recognised territories and ensure that proof of the visit is obtained before the end of the relevant period.
Although questions of VAT were previously dealt with on a case-by-case basis by the now defunct Dover Yacht Unit, HM Customs & Excise has now produced a useful ‘Guide for Yachts’. This sets out the VAT position on the acquisition of new and used yachts within the EU, and which documentary evidence of VAT payment is acceptable by the relevant VAT authorities of both the UK and other EU member states. For more information visit www.hmce.gov.uk/forms/notices/ukyachts.htm