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RVing message boards => Visitors to the USA => Topic started by: UK-RV on April 26, 2005, 09:41:46 AM

Title: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: UK-RV on April 26, 2005, 09:41:46 AM
For anyone looking to import their RV into the UK.........

Correct as at April 2005

The link is here (http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageOnlineServices_ShowContent&propertyType=document&columns=1&id=HMCE_CL_000282):

Section 5.1 Quotes :-

Can I get relief from duty and tax on transfer of residence?

Yes. You can bring in your belongings or vehicle free of duty and tax so long as you:



Belongings include clothing, furniture, portable tools of trade, pets and other household and personal effects, but not alcoholic drinks or tobacco products: you will not get relief on those unless they travel in with you and qualify for the duty-free allowances - see paragraph 2.1.

We will normally waive the second and third conditions if you could not meet them due to circumstances beyond your control. Explain the position to our officer when you declare your belongings or vehicle.

Generally speaking, "possession" means "to have" rather than "to own", but there are particular restrictions in relation to company vehicles imported by travelling sales representatives. Our National Advice Service can give you full details.

See paragraph 5.5 if any of your belongings or vehicle were previously taken out of the EC.

Other goods and vehicles imported for commercial purposes will not qualify for this particular relief. However, if you are also transferring your business to the UK, you may be able to claim the alternative relief on imported capital goods. See our Notice 343 Importing capital goods free of duty and VAT.


I hope it helps - after all, who wants to pay nearly 30% in taxes to import their RV ?

Regards

Paul
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Carl L on April 26, 2005, 01:13:40 PM
Go info for our visitors.   Thanks for posting it.
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: UK-RV on June 18, 2005, 02:27:57 AM


I should point out a slight problem (isnt there always one).

The term "normal home" is open to debate.

At present, "normal home" means a place where you are working and have personal ties OR if you are not working, then it is a place where your "personal ties" are.

What, you may ask, are "personal ties" ?

Well - we're still working on that one !!

Paul
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: UK-RV on June 30, 2005, 09:40:19 AM
GREAT NEWS !!!

After a few conversations and emails with Her Majestys Customs & Excise (HMCE) in the UK, they have finally been shown the error of their ways ( ;D) and now agree with me that I shouldn't have to pay any Import Duty and Stamp Duty when importing our RV into the UK. (unless the law changes before I import it !!).

Below, I will copy the various emails sent back and forth to HMCE, and will explain anything that is specific to my circumstances - anyone else planning to import a vehicle will have to look at their own personal issues.

1st Email - sent to HMCE

Dear Sirs,
 
I hope you are able to assist with (what appears to be) a difficult set of circumstances:-
 
My wife and I are about to let our UK house.
 
In January 2006, we are planning to go to the USA and Canada (and perhaps Mexico) for at least 12 months (maybe 2 years) of holiday touring - we will effectively be living (or residing) in these Countries.
 
We will be purchasing a 7.5+ tonne RV (motorhome) to live and travel in, worth around £75,000. This will obviously be for private use only.
 
After a minimum 12 months away, we wish to return to the UK and import the RV (which we will have owned for at least 6 months) to the UK also.
 
Do we have to pay VAT and/or Import Duty when we import the RV ?
 
I believe we will not have to pay these, but I am getting conflicting advice.
 
Perhaps you would be kind enough to answer for me - obviously your answer will be based on existing legislation and you cannot predict what will happen in 2007/8.
 
Many Thanks
Paul Chatwin

Reply from HMCE

Dear Mr Chatwin

I have now received a reply from our Motor Unit of Expertise.

Unfortunately it isn't good news.  If you are taking an extended holiday outside the EU, you are not considered to be transferring your residence as you are not deemed to be residing in any of the countries you are visiting. As you will be letting your home in the UK and you haven't got any firm timescales, they considered that from our perspective you would be considered to be resident in the UK and your motorhome would be subject to import duty and VAT when you return to the European Union.

The rate of import duty is 10% and the VAT is 17.5%.  The charges would be based on the wholesale value of the motorhome at the point it is brought into the EU/UK.

I hope that this has answered your enquiry satisfactorily, even though it was not the reply you would have liked.  Please contact me if you have any further enquiries.

Yours sincerely

[name removed]

Officer

Reply sent to HMCE


Hello [name removed]

Thanks for your reply.

A few queries for you though :-
 
Your reply stated :  If you are taking an extended holiday outside the EU, you are not considered to be transferring your residence as you are not deemed to be residing in any of the countries you are visiting.
 
Could I ask that you direct the officer who provided the answers, to consider the following items found on the Customs website (http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000282&propertyType=document#P161_19633)

5.1 Can I get relief from duty and tax on transfer of residence?

Yes. You can bring in your belongings or vehicle free of duty and tax so long as you:
 
a. are moving your normal home to the EC;
b. have had your normal home outside the EC for a continuous period of at least 12 months;
c. have possessed and used them for at least 6 months outside the EC before they are imported;
d. did not get them under a duty/tax free scheme (but see paragraph 5.2);
e. declare them to us as explained in paragraph 3.2;
f. will keep them for your personal use; and
g. do not sell, lend, hire out or otherwise dispose of them in the EC within 12 months of importation, unless you notify us first and pay duty and VAT on disposal. Our National Advice Service can tell you how to do this.

You will notice the reference is to normal home and NOT Residence :

HM Customs Definition of Normal Home :

Where you usually live. For customs purposes, that is where you spend at least 185 days in a period of 12 months, because of your work and personal connections.

But if:

you have no work connections;
or
your work and personal connections are in different countries,

then your normal home is where your personal connections are.
 
The term Personal Connections is not defined within the website pages for HM Customs - can the Officer direct me to a website, webpage or legal definition (leaflet, factsheet, court ruling, etc) of Personal Connections please ?
 
Assuming this does in fact refer to the UK house (which we cannot find any HM Customs reference that it does) - how is this interpreted ?
 
The house is in my name but the RV purchase will most likely be in my wifes name - surely this would mean my wife satisfies all of the requirements outlined in section 5.1 ?
 
What if we were to sell the house - wouldn't we both then satisfy the requirements ?
 
Sorry to bother you with all of this - our budget for the purchase of the US Motorhome is near £80,000 - which, if your reply is correct, would saddle us with a UK tax/duty bill of £24,000+ on our UK return.
 
I await your reply with increased optimism.
 
Regards
 
Paul Chatwin

Followed with another email, five minutes later


Hello (again) [name removed]

I have found some further information to support my case concerning the treatment of VAT and Import Duty on the RV we plan to bring back to the UK.

The definition of "personal connections" doesn't seem to have a definition anywhere, although I have found references to "personal ties".

However, one piece of legislation being used by HMCE follows :-

(the website reference is http://www.opsi.gov.uk/si/si1992/Uksi_19923193_en_1.htm)

The legislation is The Customs and Excise Duties (Personal Reliefs for Goods Permanently Imported) Order 1992.

The key part states :

Rules for determining where a person is normally resident
    3.—(1)  This article shall apply for the purpose of determining, in relation to this Order, where a person is normally resident.

    (2)  A person shall be treated as being normally resident in the country where he usually lives—
 (a) for a period of, or periods together amounting to, at least 185 days in a period of twelve months;
 (b) because of his occupational ties; and
 (c) because of his personal ties.

    (3)  In the case of a person with no occupational ties, paragraph (2) above shall apply with the omission of sub-paragraph (b), provided his personal ties show close links with that country.

 
Personal Ties are defined as :
 
"personal ties" shall mean family or social ties to which a person devotes most of his time not devoted to occupational ties;
 
I would appreciate that you copy the above to the Officer concerned and ask that he/she reconsiders their view - or provides substantial fact to support their opinion.
 
Once again, Many Thanks
 
Paul Chatwin

And their reply

Dear Paul

Further to your E Mails of 27 June 2005, I have received a reply from my colleague who had to refer to our Headquarters for guidance.

The only definition of 'personal ties' is that in Article 2 of the Personal Reliefs Order from which you quoted. It means family or social ties to which a person devotes most of his or her time not devoted to occupational ties.

And Article 3 goes on to define normal residence as being where a person spends at least 185 days in a period of 12 months because of his or her personal ties.  We are assuming that you and your wife will not be working whilst you are touring the US and Canada.

Unless you and your wife will be regularly returning to the European Community to visit family whilst you are based in the US/Canada, then you and your wife would be each other's personal ties. You would be devoting most of your time to each other whilst on tour.  If, as intended, you are outside the EC for 12 months or more and you would have owned the motor home for more than 6 months, then we would entertain a 'Transfer of Residence' claim on it when you return to the UK, so you would not be paying import duty and VAT on it.  You would need to keep it for at least one year when you return to the UK.  These rules would also apply to other items you
purchase in the US/Canada, except for alcoholic or tobacco items which are subject to import charges irrespective of the time they have been owned outside the EC.

We do not normally consider persons going on an extended holiday as transferring their residence as a matter of course - each case is taken on its merits.

I hope that you and your wife have an enjoyable time. Please contact me if you have any further enquiries.

Yours sincerely

[name removed]

I am now in the process of writing my request in black and white and sending it to them by recorded delivery mail. Once I get their reply in print, I will be more than happy.

It just goes to show that you shouldn't believe everything you are told on face value - hopefully, Ive now saved £24,000 when I import the RV into the UK (they'll probably go and change the law now  >:().

Now - just to clarify those few issues mentioned above :-

1st - you must stay out of the EC for a minimum 12 months (although there is a reference to just 185 days in 12 months too).
2nd - you must own the RV (or other item) for a minimum 6 months (this is where there may be a problem with LLCs as the company owns the RV ?)
3rd - you cannot sell the RV for 12 months on your return to the UK (unless you pay the VAT and Duty) - we're going to live in ours for the year.
4th - your "personal ties" must be with you - I'm guessing that means you may have a problem if your kids are still in the UK (but its worth a question to HMCE - you could always dissown them !!).

I hope the above helps a few of you.

Make sure you still do the various checks yourself - and don't be fobbed off first time around.

Paul



 
 
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Ian H on June 30, 2005, 10:07:10 AM
Good luck to you Paul
i hope all goes well with your trip and importing tax free
I will stick to my original plan because i want to sell asap in the UK
and get my return trip sorted for January 2006 ,6 months holiday is enough for me
i still got the desire to return and start earning spending money for next year
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Tom on June 30, 2005, 11:35:19 AM
Paul

24,000 quid is a big chunk of change to save! Please let us know if/when you get this confirmed in writing. This could be very useful information for others who follow in your footsteps.
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: UK-RV on July 29, 2005, 06:43:12 AM
 ;D The letter arrived today.

He's a word for word copy of the letter (I wish I had a scanner).........

HM Revenue & Customs
South East England International Trade Team
Warwick House
67 Station Road
Redhill Surrey
RH1 1QU

www.hmrc.gov.uk


Import of Motor Home under Transfer of Residence Relief

I am writing in reply to your emails.

Subject to any subsequent changes in the law, you will not have to pay import duty and VAT when you import your RV motorhome (and any other belongings acquired during your trip) into the UK as long as you:


Regarding the second condition above, under your circumstances, your normal home would be the place where your personal ties are. As you have no children, your 'personal ties' would be each other. Under Article 2 of the Personal Reliefs Order, the definition of personal ties are family or social ties to which a person devotes most of his or her time not devoted to occupational ties. Therefore your personal ties will be located outside the EC for a minimum period of 12 months before you import the motorhome. Article 3 of the Order defines 'normal home' as the place where a person spends at least 185 days in a period of 12 months.

You wouldn't qualify for the relief if you were returning to the EC regularly to visit family and friends during the time you are away. However, a 'one-off emergency visit' to the EC would not jeopardise your claim for transfer of residence relief.

If your UK home is in joint names and you were still to own it for the period you are away, this would not affect the situation.

It is our opinion that you would be granted 'Transfer of Residence' relief on the importation of your motor-home based on the facts that have been presented at this stage. The final decision on entitlement to TOR will rest with the officer dealing with your claim at the time of import. I advise that you retain this letter for production to our officer at the time of import of the vehicle.

Yours sincerely,
[name removed]
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Tom on July 29, 2005, 07:51:54 AM
Thanks for the follow-up Paul. This could be of help to others who plan/hope to do the same thing.

Please keep us abreast of your plans and do try to hook up with folks here when you arrive, either at a formal rally or one of many impromptu get-togethers.
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: terry nathan on September 08, 2005, 10:43:19 AM
Hi Paul

Congratulations - you've done a lot of leg work, with a successful outcome.    You might consider sending it off to one of the UK motorhome magazines - Motorhome Monthly tends to discuss American RVs very often.   A lot of people would be interested.

Terry (back home in La Manga, Spain)

Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Tom on May 21, 2006, 07:02:54 AM
Paul & others,

I've split off the messages discussing the registration issues to a new discussion here (http://www.rvforum.net/SMF_forum/index.php?topic=5275.msg45439#msg45439).
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: UK-RV on May 07, 2007, 08:29:32 AM

Hi Guys

Thought I would provide an update :-

Following our 15 month USA/Canada tour and subsequent return home, I can confirm HMRC have accepted our Transfer of Residence claim and have issued the VAT / Import Duty "customs relief" certificate.

This means we have in fact saved £23,000 ($46,000) - which went some way to paying for our vacation !!

There is a stipulation that we cannot sell the RV for 12 months - if we do, we have to pay the Taxes.

However, even here there is some room for manoeuvre as HMRC now calculate the taxes based on the UK wholesale value of the RV.

We can get quotes from UK dealers to buy the vehicle (which will obviously be low) and then they make an allowance for the vehicle being left-hand drive and lower the value even further.

Hopefully, if we sell this year, we can get the tax bill down to nearer £10,000 ($20,000), which would be reflected in the selling price.

Regards
Paul
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Tom on May 07, 2007, 04:19:30 PM
Congratulations Paul and thanks for the follow up.
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: ArdraF on May 07, 2007, 05:02:03 PM
Wow!  That's quite a savings, Paul.  Hopefully it made up for some of the other hassles you experienced.  ;)

ArdraF
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Shayne on May 07, 2007, 05:08:02 PM
Just think Tom  just as soon as Paul sends you that 10% of his savings, he won't have to go to the Doctor about his back from carring all that money around.   Paul  don't you think Tom Deserves that for keeping you on the straight and narrow the past year..LOL
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: BernieD on May 07, 2007, 07:02:22 PM


Hopefully, if we sell this year, we can get the tax bill down to nearer £10,000 ($20,000), which would be reflected in the selling price.


Gee, and some people complain about using a Montana LLC ;D ;D ;D
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: AJHales on May 30, 2007, 07:20:34 AM
What is Montana LLC? I've seen this mentioned in several postings but I am unclear what it is. Also I love the idea of buying an RV and touring the states for 12 months before importing it to the UK duty free. Would I need to apply for a visa to stay in the states for 12 months, if so which one & how easy is it to get?
Andy
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Tom on May 30, 2007, 08:44:48 AM
Andy,

A Montana LLC is a limited liability company which is set up through a lawyer in the state of Montana. The LLC "owns" the RV, allowing  it (the RV) to be registered in that state, avoiding the higher registration fees and taxes in other states. In addition to an initial fee, you pay a low annual fee to the lawyer and his/her office takes care of all the paperwork and payments.
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Carl L on May 30, 2007, 12:49:36 PM
What is Montana LLC? I've seen this mentioned in several postings but I am unclear what it is. Also I love the idea of buying an RV and touring the states for 12 months before importing it to the UK duty free. Would I need to apply for a visa to stay in the states for 12 months, if so which one & how easy is it to get?
Andy

I suspect you will require a visa for a one year stay, the visa waiver program only covers 90 day stays.     In any case the US Embassy is the place to go.   See their website at http://london.usembassy.gov/rctour.html (http://london.usembassy.gov/rctour.html), and follow the various links.   
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: UK-RV on May 30, 2007, 03:09:45 PM

Hi Andy

You need to apply for a B2 Visitor Visa from the nearest US Embassy - and if you can cope with the hassle of getting that, anything you encounter on your travels will be easy in comparison (did I really just say that?  :o).

The B2 will allow you to REQUEST a stay of upto 6 months on arrival in the US.

So, for a stay of 12+ months, you will go into Canada (or Mexico, or even a Cruise) and REQUEST a further 6 months on your return to the US. But you will need to stay out of US for a couple of weeks or even couple of months.

Canada is chosen by many as there are no restrictions on Brits travelling into Canada (be sure to get a free Canada card from your US motor insurance company).

The US are clamping down now on how many times you can REQUEST a B2 stamp - I've heard of Brits touring for 5 or 6 YEARS who have now been told to leave. (a bit annoying if you have the funds to support yourself).

If you find you aren't able to leave the US for a period of time before returning and REQUESTING another B2 stamp, you can send off an Extension Application (current cost $200 per family) and REQUEST an extension of upto 6 months.

If you do this, they will require lots of proof that you intend to leave (booked airfare ticket etc) and that you have funds to support yourself whilst in US. You submit the forms as late as the day before your B2 expires and they are "likely" to take a few months to process your application (that was our experience).

Hope it helps

Paul

NB You will notice I highlight the word REQUEST. This is because even after getting a B2 Visa, you have no automatic right to enter for the 6 months - you have to REQUEST it and they can - and have been know to - deny that REQUEST.
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: brenda on August 29, 2007, 08:26:10 AM
Hi guys

Does this mean that if I go myself to buy an RV, I will have to pay the tax after 1 year return? I will have given up my home in the UK and planned to go from Florida to Berlin. But if it better (cheaper)   I could come back via the UK.

I have no family that i see regularly in the UK now.

Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Tom on August 29, 2007, 09:21:11 AM
Does this mean that if I go myself to buy an RV, I will have to pay the tax after 1 year return?

Brenda, excuse me for being a little dense, but are you asking about return to the UK, to Germany or the USA? If you don't import the coach into the UK, that's a non-issue irrespective of the HMG ruling. I have no idea what German rules are with respect to VAT on a motorhome and I suspect you need to contact them about that.
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: brenda on August 29, 2007, 09:48:16 AM
Sorry Tom I meant returning to Germany with the RV although i could come back to the UK first if that means less tax. If I did that, would I be liable because I will be on my own in the US?
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: UK-RV on August 29, 2007, 10:20:42 AM

Hi Brenda

Are you "normally resident" in the UK (ie usually spend at least hald the year there) ?

If so, you can buy your RV in the USA and pay no Import Duty or VAT on your return to the UK - AS LONG AS YOUR NORMAL HOME HAS BEEN OUTSIDE THE UK (Europe actually), FOR 12 MONTHS OR LONGER AND YOU HAVE OWNED THE RV FOR 6+ MONTHS.

You would only have to pay the taxes should you sell the RV withing 12 months of importing it into the UK.

I would think you would do well to consider the UK your normal home should you later decide to take it from the UK to Germany - or you can contact HMRC and ask them the questions. In theory, it shouldnt matter as we are all in the EU and tax treatment should be the same, but you just never know how one Country will interpret the same Laws.

Hope it helps,
Paul

PS If you are thinking of doing all this as a single traveller, you will do well to make friends on this forum as you WILL need their help at some point.  ;D (we all have).
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: brenda on August 29, 2007, 10:58:04 AM
Many thanks Paul

I have been resident in the UK and plan to stay in Berlin for a few months at the end of September then fly to Florida for my rig  :) maybe in January. I can have it shipped to Amsterdam then cross to the UK then back over to Germany I presume if the UK taxes are less.

From what I have been reading on this thread, the only reason that tax was not due was because they were a couple in the US for the year, with no children and the tax authorities said that it depends on individual cases over the relatives rule ie having ties. 

Yes I am feeling a bit nervous about doing it alone  :o
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: UK-RV on August 29, 2007, 03:17:57 PM

Hi Brenda

It was Ann-Marie and myself who started this thread - we've just spent 16 months touring the US and have just shipped the RV into the UK, tax free.

Firstly. if you arent looking to spend 12+ months out of the EU then you wont save any tax at all.

Secondly, your "normal home" (where you live at least 6 months of the year) and personal ties (immediate dependant family) and/or job has to be outside the EU.

If you have no dependant family (usually kids under 18) nor job then it is just you who needs to be out of the EU for that duration - obviously your "normal home" will become your RV during your tour.

It really isnt that difficult at all - even though it sounds it.

As I posted on your other thread, it also depends on the value of your RV as to whether its worth going down the tax free route.

Paul


Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: ArdraF on August 29, 2007, 06:00:06 PM
Brenda,

There have been a couple of threads in this forum that were started by ladies wanting to travel alone and asking for advice.  Suggest you do some searching in this Forum and follow these threads.  Lots of good tips in them.

Wow, I think it's great that you want to do this and I wish you the best.  We'll all be here to help you over some of the hurdles that you're bound to encounter.  ;) This is a good forum with a lot of people who have expertise you'll need.  We also provide moral support when things don't go quite as planned.  ;D

ArdraF
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: brenda on August 30, 2007, 03:59:46 AM
Paul

Quote
If you have no dependant family (usually kids under 18) nor job then it is just you who needs to be out of the EU for that duration - obviously your "normal home" will become your RV during your tour.

I really fancy the idea of staying in the States for a year but it sounds to me though that there is a grey area regarding family ties as you said earlier that each case is considered on its own merit. My children are all adult and I do not see them regularly and they certainly are not dependent.  But I will be on a tight budget and as you say, the more you spend the more worthwhile to go this route..

Everything depends on whether i buy an apartment in Berlin with some of my money and let it out so that I have the funding to fulltime. The prices are really low and it would give me somewhere to retire when it all gets too much  :)

So I guess the amount available to be from 15K to a possible 25 if I do not buy in Berlin.

If I own an apartment then I will have to pay the tax regardless of the ties ruling?

ArdraF

Thanks for your encouragment  :) I was getting cold feet last night!

I am still not sure that I can cope with buying in the US on my own, but want to have a year there. Dilemma  :o I am very grateful for the response and advice so far though and think maybe I can do it if i can get help from the RV community. It is quite amazing for me to find such supportive helpful people in this day and age. Many thanks.
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: UK-RV on August 30, 2007, 04:33:04 AM
Hi Brenda

If I may, I would suggest starting a new thread for any questions you have, as we're reading 2 or 3 threads now and adding answers here and there - it will be easier for everyone and would help others in the future.

I really fancy the idea of staying in the States for a year but it sounds to me though that there is a grey area regarding family ties as you said earlier that each case is considered on its own merit. My children are all adult and I do not see them regularly and they certainly are not dependent.  But I will be on a tight budget and as you say, the more you spend the more worthwhile to go this route..

You will have no problem with going the VAT and DUTY free route, based on your info above.

Everything depends on whether i buy an apartment in Berlin with some of my money and let it out so that I have the funding to fulltime. The prices are really low and it would give me somewhere to retire when it all gets too much 

LOL decisions, decisions. I dont know what the price of property has been like in Berlin over the last few years - if prices are fairly static there, you could just put the money away and try the full-time RV lifestyle. You may decide you dont want to live in a "normal" home again. Visit www.rvfulltiming.com (http://www.rvfulltiming.com) for a UK fulltiming group and www.motorhomefun.co.uk (http://www.motorhomefun.co.uk) for other advice on MHing. (hope its OK to put links Tom?)

So I guess the amount available to be from 15K to a possible 25 if I do not buy in Berlin.

OK, I take it we're talking £GBP, which 20K is around $40,000.

Other forum members will give you an idea what you can get for that budget (take a look at ebay.com for some rough ideas).

You will need to allow $1,400 to set-up a Montana LLC (search forum for details) which will save you paying the sales tax in USA and a similar amount for insurance. Then allow $3,000 for shipping into the UK (asuming your RV will be a smaller one).

Allow $4,000 in flights and repairs.

So, I would guess you have $30,000 to buy with.

You could use interest on your savings (??) or rent from the apartment (??) to fund your stay (I dont know your savings or rent so you need to decide on your usual spending).

If I own an apartment then I will have to pay the tax regardless of the ties ruling?

No, you could either import into Germany (I dont know the procedure but should be EU-wide) and you shoulnt have to pay the taxes (as your home and ties have been outside the EU for 12 months).

Or, you can import into the UK and register under one of your childrens addresses (as a care of address, which is OK) and then take to Germany.

Either way, if you sell within a year it is then that you would have to pay the taxes.

The taxes would be (roughly) $33,000 + 10% = $36,300, + 17.5% = $42,650 = TAXES OF $10,000 OR £5,000

Basically, even on your small budget, if you stayed in the US for a year you could have £100 per week spending money toward a US tour courtesy of HM Governement FREE !!! - it wont be enough on its own but you will have savings interest or rent too.

Now, compare what you can buy in the USA with something similar in Europe and you will see you will save by buying it in the USA too.


Dont forget, you will need a B2 Visa for the USA - do a forum search for advice on that one.

I know of 3 UK couples who will be touring the USA around the time you will be there, so there's no need to feel "alone".

Other forum members will advise, but I believe there is also a group in the USA for single RVers too.

Paul



Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Tom on August 30, 2007, 05:07:19 AM
Paul,

Appreciate you jumping in on these topics and sharing your knowledge and experience.

Dont forget, you will need a B2 Visa for the USA ....

Since Brenda is a US citizen, she'll merely need her US passport and should be able to come and go at will.
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: UK-RV on August 30, 2007, 05:14:58 AM

Tom

If Brenda is a US citizen, then forget everything Ive written  ;D

I didnt read her nationaility anywhere, other than references to the UK and her children in the UK - oops

Paul
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Tom on August 30, 2007, 05:25:43 AM
Brenda confirmed it here (http://www.rvforum.net/SMF_forum/index.php?topic=12992.msg115561;topicseen#new).
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: ArdraF on August 30, 2007, 05:21:36 PM
Brenda,

I've been reading your various threads and something just occurred to me.  If you want to travel in the US for a year or so, is there any good reason why you have to buy an apartment in Berlin now that will only sit empty for a year while you're in the U.S.??  Seems to me you could save money by traveling first and settling in Berlin later.  Or do you plan to rent out your apartment?  And, just curious, why move to Berlin if you don't understand German very well?  Is there something I'm missing about this whole situation?

ArdraF
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: brenda on August 30, 2007, 07:12:05 PM
Hi AndraF

I will be using Berlin as my base as I have a good friend and other contacts there, who will deal with mail, and who lets me stay. I am learning German as I want to do some travelling around, see the Black Forest etc.

The property prices are going up now and if I buy and rent out, it will give me better returns than saving, the option of settling there later or the chance to sell and make a bit of retirement money. The prices are so low it is a shame not to get in on it.
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: loddy on July 29, 2010, 04:28:27 PM
I have been doing a lot of reading about buying and importing into the UK, I understand you have to have your home outside the EU for 12 months but is there any rules about visiting the UK in that 12 month period , you know visiting at Xmas ect ??.

I'm sure someone knows on this forum.

Loddy ;)
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Tom on July 30, 2010, 08:59:29 AM
Have a you read this topic (http://www.rvforum.net/SMF_forum/index.php?topic=860.msg7387#msg7387)? A reply quoting HM Customs & Excise suggests that the 12 months does not need to be contiguous.
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: loddy on July 30, 2010, 11:00:59 AM
Thank you very much, I had read it but didn't understand/absorb it first time round  :-[

Loddy  ;)
Title: Re: Importing your RV into the UK (or EC Countries) - Tax Free ?
Post by: Tom on July 30, 2010, 11:13:56 AM
I seem to recall that other Brits have gone home for a short stay during their "time outside the EU".

BTW I trust you're familiar with the US immigration & visa requirements. We have a discussion or two on our Visitors to the USA board and an article or two in our library section by the same name. Essentially, they will only give you 6 months maximum, the exact duration being decided by the agent at the airport on arrival. Most folks take a trip to Canada for a week or two, then re-renter the USA to restart the clock. However, we have heard about one couple who were refused re-entry into the USA when they did this. Alternatively, there's a form you can file to apply for an extension of stay, and some Brits have reported doing that. There's a discussion or two here somewhere on that topic, although it's not without it's own potential issues.