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?
![Mad :mad: :mad:](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
).
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