Assume that you purchase a new yacht which we charter on your behalf for 16 weeks per year.  To the basic price of say £80,000 plus VAT, let us assume you would need to add another £20,000 plus VAT for extras and equipment to bring the yacht up to the charter specification required by the DoTp.  A private owner may well spend a similar sum on equipping his yacht with the latest "goodies".  The total cost would therefore be £117,500 including VAT. If set up properly, you could reclaim the £17,500 VAT element of the purchase.  Annual insurance (£2,000 . no VAT), marina fees (£2,350 including VAT) and maintenance (£2,350 including VAT), would be similar whether the yacht was kept privately or owned for charter management purposes but, once again, you could reclaim the VAT element of the marina fees and maintenance, making a total saving so far of £18,200 over the private owner.  Your charter income, after deduction of our management fees, would be in the region of £10,000.

 As time goes by, your asset is not losing its value in the same way that a car does the minute it leaves the showroom. However you will have to charge and repay the VAT when you sell the yacht but obviously this sum can be invested in the mean time rather than languishing in the government's hands. Naturally we would advise you to consult with your own Financial Adviser on the subject  of VAT along with  depreciation and capital allowances.

Undeniably there are better investments but none can compare to the excitement and pleasure of owning and sailing your own quality yacht while having it "earn it's keep". At the same time you are safe in the knowledge that your yacht is professionally cared for by Alba Sailing.   If you would like more information simply give us a ring. We are here to help and are always pleased to have a chat about the suitability of yachts for charter.