Depreciation on yachts

manx man

Depreciation


Can anybody tell were I can find details about depreciation for yachts held with in a company
How I work out the residual value
What rate and over what period of time

Manx Man

T.C.

Yachts....as a business asset? Really what do the company do? Anyhow, surely you could depreciate them in the same way as a vehicle!?!

sloshed

Hi

If you are looking at the capital allowances situation. It may be worth looking at
http://www.hmrc.gov.uk/manuals/cg4manual/CG76909.htm and contacting somebody with slightly more tax expertise.

May I suggest you PM Dean Shepperd

Poodle

[QUOTE=

May I suggest you PM Dean Shepperd[/QUOTE]

You got a yacht Dean?

Been charging your clients too much?

deanshepherd

I work from my yacht. 100% business use, honest guv..

groundy

I deal with a company that carry out charter cruises and skipper instructor training and therefore hold a yacht as an asset in the accounts. This business is a partnership and I have depreciated the asset at 15% straight line, just like any other planty and machinery.

I have had many discussion with the client who argues that the yacht does not lose value. However, having looked into long life assets, I don't believe that yachts fall into that category and have therefore claimed capital allowances as normal.

AatAbi

I have got you this from an expert.

There was a time in the not too distant part that the received wisdom was that you lost the vat element in the first year, but that inflation in build costs then slowed depreciation up to less than 10% a year thereafter for 'quality manufacturers' (American mass built yachts depreciated much faster for example. but that was down to build quality)

As a result of current events there is a massive oversupply of yachts compared to buyers (and mooring and maintenance costs remain very high). As a consequence depreciation has accelerated massively except for top-end quality yachts from Northern Europe, where there remains a reasonable interest, due to accepted quality of build.

Production costs continue to rise, however appetite remains weak, therefore this market will not recover soon.

Motor yachts follow a similar pattern, although the falls recently were even faster initially (diesel price contributed to issue as government was forced by the EU to charge 'road price' rather than cheap tax red diesel).