Tax specialists target owners of super-yachts

By Julien Morel

THE world's super-wealthy are using a Jersey company to help them buy, manage and sell their super-yachts.

Although owning a 100-metre yacht complete with helipads, diamond-encrusted staircases and 50-seat cinema is beyond the wildest dreams of most of us, that does not stop the Island playing a key role in the global super-yacht business.

Tax specialists Chiltern runs a marine division from its Jersey office on the Esplanade. Although many would regard buying a 30-metre Sunseeker as a quintessential trapping of success, Chiltern plays in an even higher league.

The company caters for the Abramoviches and Gettys of this world, whose opulent boats are more like cruise ships than private yachts and usually heave into view wherever there's a key high-society event, such as the Monaco Grand Prix.

Matthew Ruane is head of the marine division.

'Buying a super-yacht is not just about signing a cheque and jumping on board and the process is in fact quite complicated, especially if you intend to charter the boat out,' he said.

'Do you want the boat in your own name or a corporate ownership structure? What insurance do you need? How will you pay your crew? Where will you register the boat? Is VAT payable? How will you handle your expenses?

'These are the sort of questions that Chiltern can help answer and we can not only help someone get up and running but also manage the yacht on an ongoing basis. This is important because the fiscal and regulatory requirements are ever changing and often need detailed consideration and planning.

'So we aim to take the pressure off the owner who, after all, has probably bought the boat to use in his or her leisure time.

When dealing with the world's super-rich, Mr Ruane and his team know that their service has to be super-efficient.

'Our approach is not to try to fit our clients into an off-the-shelf product but to build a suitable structure based on their individual needs. We don't seek loopholes in the law but try to find the most tax-efficient solution for our clients and Chiltern prides itself on having one of the strongest VAT teams in the country.

'The marine division also fits closely into Chiltern's overall structure - clients are referred to us by other parts of the business and we also make use of the company's wider resources, for instance, to set up a trust, LLP or company.'

But serving the super-yacht owner demands even more than just bespoke financial arrangements. Mr Ruane has had to deliver champagne, drive limousines, organise firework displays and procure Cuban cigars for clients, often at a moment's notice.

And he is confident that Chiltern's tailored service will secure it a greater proportion of an ever-growing market.

'Although you might think the world's super-yachts are owned by an elite handful, there are currently 200 yachts over 35 metres being built,' he said. 'There are more wealthy people in this world than ever before and Chiltern intends to play a full part in the growing super-yacht market.'

Published 25/04/05 article © Jersey Evening Post website © 2003 Guiton Group

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