Is there any 50nm concession in the UK, or anywhere else in Europe?
I vaguely recall that a JAA CPL removes a radius limit like that from charity flights but that’s really obscure. I have an FAA CPL so needed a CAA permission to do one such from Shoreham to the Isle of Wight because that was over 50nm, plus they wanted evidence I had flown that far before.
The pilot cannot make a profit but can do a cost shared flight under current EASA rules.
I also vaguely recall a US reg allowing a PPL to be a dealer demo pilot… Can anyone remember that?
Just to recal my last aircraft selling and I would do it in the same way if necessary
It was a two seat ex flyingschool plane. Many hours and even more landings. Fortunately I didn’t see any of it before.
I offered the plane online on one onlinemarket (not all I know) with the typical information. Those of them who were interested asked for more information. They got a weblink to a normaly unknown website with all information, lots of pics and scanned documents. So full information was only for a handfull people available and not for the rest of the world. Belive it or not, no tirekickers. Sold within one day.
I think my present plane, the Grumman, will be sold in the same time. There are already some people they like to be informed when the time has come.
flybymike wrote:
flybymike 30-Dec-15 17:23 #29
If I remember correctly there is no rule against charging for a sightseeing flight as long as it returns from the same airport it took off from and stays Within 50NM from that same airport.
I don’t think that would be permissible in Europe if flown on a profit making basis by a non AOC holding PPL.
Who is making a profit? Besides its part of a sale with a non refundable deposit.
Does anybody really care?
That’s why I said earlier that there would be no problem if done on a cost sharing basis.
(Incidentally, you have misquoted me by including your own post with mine)
Sorry about that. Did not intend to cause confusion. I just quoted the whole quote, your response to mine. Next time Ill break it out by highlighting it.
Thank you all for the helpful replies.
One more question regarding VAT. If the aircraft has been VAT paid already (free circulation etc), does this effectively increase it’s value by the equivalent VAT amount on its current value? (I.e $100,000 without VAT and $120,000 if it’s already paid) It is my understanding that if VAT has been paid, it doesn’t need to get paid again by a future buyer.
This makes sense if it’s being operated privately, but if say a flight school purchases the aircraft could they reclaim the VAT which has already been paid?
For VAT to be reclaimed on a particular sale, the seller needs to issue a VAT invoice, and to do that the seller needs to be a VAT registered business.
So if a VAT registered flying school buys an aircraft for their own use, a private seller is at a disadvantage compared to a VAT registered seller, since VAT is not reclaimable for the school, and will achieve a lower cash price.
If VAT-registered dealers cannot reclaim VAT on the purchase, they only have to pay VAT on the difference between purchase and sale price, so do not have that problem, but they cannot issue VAT invoices if they do that.
If you want to look these things up – these VAT schemes are margin schemes, and are frequently applied in used car and arts dealing. They still lead to the same item being taxed on VAT more than once, but not for the full price at each transaction.
If the aircraft has been VAT paid already (free circulation etc), does this effectively increase it’s value by the equivalent VAT amount on its current value?
Yes, but only to a non VAT registered buyer.
To a VAT registered buyer, this is not good because he can’t claim back any VAT on it (since the seller is not offering a VAT invoice).
So, there are two distinct markets for planes:
On the face of it, a non VAT registered buyer will pay the same for say a 500k+20%VAT plane as for a 600k VAT-paid plane, but in reality the latter will not be 600k because the seller has to concede a bit to shift it to a private buyer, so it may be 550k.
Whereas a VAT registered seller can charge the full VAT because a VAT registered buyer couldn’t care less about the VAT; he will claim it all back.
If the aircraft has been VAT paid already (free circulation etc), does this effectively increase it’s value by the equivalent VAT amount on its current value?Yes, but only to a non VAT registered buyer.
I agree but the situation will depend a lot on the plane. In general the more expensive the plane gets the less demand there will be for VAT paid aircraft. A 20k plane will usually be bought by private persons while nearly all multi million planes will be purchases by VAT registered companies which do not care about VAT. Either “real” companies or purpose registered aircraft charter companies.
