The art of a really great aircraft broker is to look after their clients' interests whilst bringing both sides of a transaction together: eliminating, mitigating or navigating any factors that might upset or delay the transaction.
One of these factors could be the tax impact.
Time and again we are contacted when a transaction is well under way and suddenly someone realises that checking out how the buyer or seller's tax position is impacted by the transaction could be important. We know that time kills a transaction but so does the possibility of a large and unforeseen tax bill.
The aircraft brokers we work with on a regular basis know Martyn Fiddler Aviation's services can be a real help to getting the deal done.
We can provide tax advice, in advance, to either the buyer or the seller on factors such as:
- Location of transaction
- Timing of transaction
- Resolution of any historical tax status issues
- Method of transaction
- Location of funds used
- Ownership Companies
- Location of seller/buyer
We can also advise on matters such as whether an aircraft should be exported or imported before/after, or as part of the transaction, or whether Customs Warehousing is needed to mitigate any potential tax liabilities.
This enables aircraft brokers to help their clients organise their affairs in advance so a transaction is not put "on hold" whilst any unforeseen problems are resolved.
Understanding the tax position of your client and how to mitigate it, in advance, can remove a potential obstacle to a deal being done.
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Be Prepared for 31 December 2020
In less than 4 months’ time the UK will leave the European Union (31 December 2020). At the time of writing there is no agreement in place to determine what the status of goods (including business aircraft) imported into the EU (including the UK and Isle of Man) before 31 December 2020 will be.
In the newsletter attached Martyn Fiddler Aviation outline the list of possible results, explaining the impact of each scenario and the work that will be requested of aircraft owners in order to remain in free circulation in both the UK and the EU.