Jul 2 2018

Donate A Boat To Charity, donate a boat.#Donate #a #boat

Donate a Boat to Charity through Boatbreakers

Donate a boat

Here is how it works.

You or a relative calls and passes us details about your boat. We pay her a visit, and value her. Once completed we then offer her for sale to our registered buyers list, advertise her online and get her noticed. Once we have found a buyer and negotiated best price we then complete all paperwork and transfer title to the new owner. We then pay off any bills the boat has amassed and pass the remains to the chosen charity. The receiving charity issues us a receipt and we give this to your estate for further tax relief processing.

By donating your boat to us and we sell this asset on your behalf and pass all the profits from the sale to any charity of your choice ensures you will be directly helping charities of your choice.

There are two main ways to donate your boat to charity via Boatbreakers. Although different, both options have associated financial benefits:

Leave Your Boat to Charity

Manage Inheritance Tax by leaving your boat to Boatbreakers in your Will

Assets (Yachts and Boats) which are left to us and then sold with the profits from the sale going directly to a charity of your choice makes the value sold exempt from Inheritance Tax. Consequently, boat owners can use the market value of their boat to reduce the amount of Inheritance Tax their family will owe after they die.

By leaving your boat to us, you will be able to enjoy your boat as you get older, secure in the knowledge that when you die it will not become a millstone to your family. Even if your boat is moored overseas, it will immediately cease to be a cost or liability.

Where the value of an estate is over the Inheritance Tax (IHT) threshold, people can remove the value of their boat from their estate when they die.

Through our partnerships with specialist law firms and tax advisors, Boatbreakers can help you to plan ahead for the future.

Donate a boat

Donate a boat

Donate A Boat

Donate your boat to Boatbreakers and benefit from Gift Aid

Boatbreakers Donate Your Boat model enables boat owners to quickly dispose of their vessels without incurring any more costs. This is particularly helpful for people who are facing escalating maintenance costs or where monthly mooring or storage costs are becoming a financial burden.

Once accepted for the scheme, any debts owed against the vessel will be paid off from the final selling price, with the net proceeds being passed to a charity of your choice as a donation.

Donate a boat

Donate a boat

Inheritance Tax Benefits include:

  • No Inheritance Tax (IHT) is paid on the gifts of assets to charity.
  • If the value of a boat takes an estate net worth over the IHT threshold, by donating it to us and then the sale proceeds are donated to charity the estate will be relieved of any IHT.
  • The value of a charitable gift is deducted from estate valuation.
  • If the boat represents 10% or more of the value of the estate, leaving it as a legacy will reduce the tax on the taxable estate from 40% to 36%

Through our partnerships with marine lawyers and specialist tax advisors, we d be glad to help with your Inheritance Tax planning. For further information on Boatbreakers legacy gift scheme, download our brochure, or request a call back from a member of our team to find out more.

If the estate including any assets held in trust and gifts made within seven years of death is more than the threshold, Inheritance Tax will be due at 40 per cent on the amount over the nil rate band. From 6 April 2012 people who leave 10 per cent or more of their net estate to charity can choose to pay a reduced rate of Inheritance Tax of 36 per cent.

Working Examples:

A higher rate UK tax payer sells their boat for £20,000 under our ‘Gift Your Boat’ scheme.

£4,000 in mooring fees and other miscellaneous charges are owed to the marina and a local boat mechanic. We sell the boat for 0% commission, the marina has agreed to freeze mooring fees for six weeks and the mechanic has agreed to wait for his money whilst the boat is sold.

Under Gift Aid, Boatbreakers can increase the value of the ‘£16,000’ donation by 25 pence in the Pound (25%) to £20,000. What s more, higher rate taxpayers can claim relief from HMRC thereby reducing the tax owed. The tax owed in the financial year in which the donation was made must be greater than the value of the rebate.

Another working example:

A widower owns a cottage in Hampshire worth £500,000, she has financial assets totaling £200,000 and her husband’s motorboat worth £50,000 moored in Gosport.

The total value of the estate therefore is £750,000.

Given the widower s husband died on 1 April 2008, the couple s inheritance tax allowance stands at £625,000. By leaving the yacht to Boatbreakers in their will, the value of the estate for IHT is reduced from £125,000 to £75,000. Consequently, IHT payable is reduced to £30,000.

To find out more about Boatbreakers Leave Your Boat to us so we can sell it and give the proceeds to charity’, call 0845 5083338.

We can also relocate the boat to our marina or help you to freeze mooring fees whilst the boat is sold.

By donating the net proceeds of the sale to charity, UK taxpayers are able to increase the value of their donation to charity by 25% under the Government s Gift Aid scheme. What s more, higher rate tax payers are also eligible for tax relief which equates to 20% to 30% of the gross value of the gift.

  • You don’t have to bring the boat to us, we collect
  • You don’t have to fix the boat before we accept the vessel
  • You don’t have to clear the debts before you give it to us – we will sort this out
  • We will do all the paperwork for you
  • It s green you are recycling your boat.
  • You eliminate the hassle of selling or trading in your boat.

Finally, in the case of a wreck or sunken boat this type of boat has no value and in fact will cost money to dispose of her properly. Therefore we cannot accept this type of boat in our ‘donate your boat to charity’ scheme.

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