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Written question asked by Lord Kirkhope of Harrogate (Conservative) on Tuesday, 1 October 2019, in the House of Lords. It was due for an answer on Tuesday, 15 October 2019. It was answered by Earl of Courtown (Conservative) on Tuesday, 8 October 2019 on behalf of the Treasury.

Aircraft: VAT

Question

To ask Her Majesty's Government what, if any, will be the VAT implications for aircraft which have to date been imported into, but may not be physically in, the UK on the planned exit day from the EU.

Answer

Some aircraft imported into the UK will be eligible for zero rate of VAT as shown in Notice 744C on ships, aircraft and associated services.

If an aircraft has previously been imported into the UK with the appropriate taxes paid, its location on the day of Brexit will not affect its status as domestic goods, including UK VAT paid status. On return to the UK the importer may be able to claim Returned Goods Relief (RGR). This will be subject to conditions given in the RGR Notice 236.

The free movement of aircraft being used as a means of transport is guaranteed by the Chicago Convention. This allows aircraft to land and take off at airports all over the world without the inconvenience of paying and reclaiming import duties, including VAT, each time a trip is made. This will continue after the UK leaves the EU.

Secondary information

Type
Written question
Reference
HL17967
Session
2017-19
Subjects
Aircraft Imports VAT Brexit
Link
View this Written question on www.parliament.uk