Financing a new boat
Boat buyers have many choices when it comes to paying for their
new boat. Marine finance is available from high street banks,
specialist lenders and via brokers.
A Marine Loan is ideal for buying smaller
boats, refitting, or purchasing extra equipment.
- Marine Mortgages tend to be used for
purchasing boats with a value £3,000+, and can normally
be up to 70% of the value of the boat.
- The small boat market is often a starting
point for many newcomers and finance is available for vessels
with loans of up to £25k using a fixed rate marine mortgage
facility over periods of up to 60 months.
- For boat loans ranging from £25k upwards the
marine mortgage facility is usually a variable rate and is usually
over a period from 5 to 10 years.
VAT (Value Added Tax)
Most new boats are subject to VAT (at the standard rate), but
there are a few exceptions:
- Houseboats that have a fixed mooring.
- A boat that is of a gross tonnage of not less
than 15 tons AND which is neither designed nor adapted for use for
recreation or pleasure. HM Revenue & Customs now accept that
boats over 15 tons which are going to be used as your private
residence qualify under this definition and as such are zero rated
to you if you purchase them now.
- A boat that you intend to take to another EC
country, however VAT at the standard rate will be due in that
particular EC country.
- A boat that you intend to take to a country that is outside of
the EC. However it should be noted that VAT would be due if the
boat is bought back into the EC for permanent moorage.
For advice on buying your boat, contact the
Insurance, Financial & Legal Services Association. The
IFLSA is a Group Association of the British Marine Federation,
representing businesses from the Insurance, Financial and Legal
fields of the Industry, who provide services to private and
commercial boat owners.
If you have any questions, please email us email@example.com
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