Thanks for the info folks
I had already checked the situation on VAT with the dept. They conrmed that even if I keep it on a 'N' number I will still have to pay 17.5 % of the 'value', although they could't tell me how they reach the value and would send me some literature ?
Furthermore, even as a Uk limited company, registered for VAT as we are. If we keep the plane on the 'N' number we will not legally own the asset and therefore cannot claim the VAT back in the normal way on purchases.
To complicate this query even more. I am worried about how they might value the plane. Considering the ammount of money I am going to spend on it in the USA. Mainly the new engines. I know this is only a 1950 kg gross toy and not a 747, but if I keep it on the 'N' number. Can the engines be owned by someone other than the Aircraft owner. ie we own the engines but under the US laws are only a 'benificial' owner of the plane. Paying our VAT as due on the items seperately , but claiming the cost of the engines, plus tax on our VAT return.
Have I hit upon a brilliant idea to avoid paying the £ 3k plus VAT on the engines without gaining it back later. Or is it wishful thinking ? I am also aware I will have to pay VAT on any insurance and transportation costs.
As for the airframe mod. This is the part I am most concerned about. As I have no idea how the Caa treat these issues. (i assume I wont have to worry about it is I keep it on the 'N' number,as it is a faa approved mod.)
The aircraft is currently totally original with only a change in some radios since it was built. But I would really like to get this mod done over there.
The mod involves removal of the rear undercarridge clam shell doors and some actuators and pipes. Replacing only a small fairing into the wheel bay. This reduces the complexity of the system and prevents the negative rate of climb on one engines when cycling the gear.
If this is going to coast an arm and leg, the Faa route is looking more favourable by the day, even with the VAT issue
