Financial/Tax advice for Helicopter Purchase in UK

[Bilbo Bagover]

Does anyone have contact details for a financial/tax advisor for the purchase of a new helicopter? I am currently working on a project to buy a light twin and am trying to find the most tax efficient method of purchase and operation.

The owner has the cash to buy it outright but is this the most tax efficient route? He plans to use it about 150 hours a year and lease it out when not using it to recover some costs.

Any advice gratefully received.

Bilbo

[206 jock]

Does he want to own it presonally or through a company? HMRC are very tight on this now and are 'actively discouraging' companies to own helicopters that are just for jollies. And as soon as they hear the word 'helicopter' they are all over you like a rash (I know, I'm half way through an investigation now!). If a company asset is available for private use by a Director - even if for only one flight a year - the taxable benefit for the Director is 20% of the cost of the asset, no if's no but's.

If owned personally, I'd say use the cash!

[maxvne]

The other route you could take is the IOM reg for tax reasons its good, the N reg by importing through Denmark which hasnt closed the doors yet on the VAT exemption then you set up a trust company and you can legally sell shares in that company for each hour you sell. Last way is on a UK reg and park the heli with an AOC operator. PM me if you need any help I have gone through all 3 ways

[bladewashout]

If it's company owned but the director pays the same rental as any contract user pays (arms length negotiation, including VAT), then I can't see how the revenue can complain.

You win at the end when you sell it, can offset costs, save on the maintenance (VAT) etc., just take the hit on the flights, don't ever fly it for free otherwise (as has been pointed out) you'll be taken to the cleaners.

BW