Martin Kennaugh is head of aviation at Martyn Fiddler Aviation and is based in the Isle of Man. Martin joined the ICM Group in 2007 and quickly developed ...Contact Martin Kennaugh
I am a financier and we may need to repossess an aircraft for which we provided finance, do we need to worry about the VAT situation of the aircraft if we do this?
I am a financier and we may need to repossess an aircraft for which we provided finance, do we need to worry about the VAT situation of the aircraft if we do this? It will remain in the same ownership company so that means the VAT status will stay the same, doesn't it?
The VAT status of the aircraft will depend on how the aircraft is (and was) owned, operated and imported in the UK/EU. If any of these factors change subsequently then the import status of the aircraft may change also, in other words the VAT status may be lost and VAT may become due on the aircraft. If the ultimate beneficial ownership, or chain of ownership, of the aircraft owning company is changing this may still cause a tax liability. We would always advise caution in cases such as this and recommend that you do have the situation checked out by a tax professional. Please don't take a risk or take advice from someone who is not a professionally qualified tax advisor to give tax advice.
If you feel you need to seek professional tax advise, Martyn Fiddler Aviations has three inhouse Chartered Tax Advisors who all specialise in aviation and are well equiped to deal with your aircraft matters. Please don't hesitate to contact Adrian, Alena or Greta today.