DublinP
In this case the registration is between the UK and the US, which plays a mayor part in the VAT issue.
If you buy / import / keep, an N reg (US) aircraft here in the UK . It's ownership is help by either a US trust, person or company. Because as a non US citizen you cannot own the aircraft. Therefore you are not the legal owner of the aircraft (or engine if less than 750 shp).
So as a UK person or company who is VAT registered you cannot claim back any VAT on the purchase of the aircraft (beacause you don't own it).
You have to pay VAT on the aircraft if your importing it from the states, becasue it will be permanantly based and operated here. If you fly it back the the states (or a US dependantcy)and operate it there for more than 6 months of the year, you can avoid it.
As for charging VAT on renting it out. Anyone can do this if it's a commercial operation, in any EU state. There is a set turnover (sales) limit at which point you must be registered. But you can voluntarily register before this. So it's a level field across the EU.
But if you cant claim back the VAT on importing a N reg plane (to be kept on the N reg), the only point would be to claim back VAT on operating costs.
540
There are very few aviation wise accountants and any of these would know little about import issues. When I was looking at bringing a plane back from the Us (An O-2a) I talked to Customs and Excise mainly. Purchasing a used ex-military machine who's manufactured origin is outside the Uk is even more fun, when it come to import codes and valuation issues etc.