I am thinking about buying a narrowboat. She is 15 years old, and is reported to have had two owners. She was built and fitted out by Eastern Caravans and I have viewed her. The fit out seems to have been done well and the boat is in fair condition. My concern is that the broker advises that there is no original documentation to show that VAT was paid when she was first built. On looking this up it appears that using HMRCs formula that she would have attracted Vat at purchase, and if this was not paid the liabiliy would pass on to me as last purchaser. I obviously have no wish to pay one fifth of the vessels value extra if the taxman knocks on my door.
My question is, is this a likely scenario and could it be used to negotiate a lower price? Also is there any way of checking to see if the VAT was paid in the first place? Should I be worried or not?
Thanks for sharing your knowledge and experience.