Earlier this year, the Yachting team and I completed the acquisition of a yacht for a high-net-worth family. The yacht, which was already Value Added Tax (“VAT”) paid, was to be used by the family and also offered for commercial yacht charter. Below is a brief case study of the work we delivered.
The client
A multi-generational high-net-worth family. The family had identified a VAT paid yacht that they wished to purchase for mixed use; the mix being private use by the family and commercial use by third party charterers during the high season, predominantly in the Mediterranean. The key considerations for the family when deciding on the structure and flag were limitation of liability, succession planning and ease of use (particularly with regards to the switching of yacht status from private to commercial).
The objective
The family required the yacht to serve the entire family while being able to operate both privately and commercially within the EU. To that end, achieving a structure suitable for the entire family and choosing a flag that could be fluid with changes of yacht status were critical goals.
Our role
Working with the client’s professional advisers, we established a private trust company (“PTC”) structure for the family consisting of a purpose trust, PTC, discretionary trust and special purpose vehicle (“SPV”). We made arrangements for the acquisition of the yacht, registered the yacht in Malta and handled the VAT registration of the SPV in all jurisdictions from which commercial charters will commence. We continue to provide full management services including directorship, trusteeship, administration, accounting and VAT reporting for the structure on an ongoing basis.
Fiona Moore is a manager for First Names Group in the Isle of Man and part of our specialist Private Client Yachting team. Fiona delivers expert superyacht ownership and administration solutions for a diverse portfolio of ultra-high-net-worth individuals and families.
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