Owning and operating an aircraft is complex. With the legislative and regulatory arena surrounding the aviation industry continually evolving, it has never been more important to stay abreast of changes and new developments to ensure that any aircraft being managed is done so effectively whilst remaining compliant.
With a comprehensive understanding of the industry, our aviation team holds vast experience in structuring the ownership of a range of aircraft including business jets and helicopters.
As such, our team are well placed to assist owners and their representatives in understanding the diverse requirements associated with not just ownership, but the registration and operation of private and commercial aircraft.
We will look at how and where the aircraft is to be used to ascertain whether there are any tax or VAT exposures that need to be considered and to evaluate whether there are any fiscal benefits or the opportunity to reduce any liabilities through tailored tax planning.
We understand that implementation is key to the success of any effective ownership structure and in this regard we work closely with the professionals providing the advice to ensure that we provide a service which is comprehensive and attuned to our clients’ diverse needs.
From statutory administration, to the provision of officers and registered office, assistance with the sale or acquisition of aircraft and EU importation requirements, we provide a range of ancillary services designed to simplify and support aircraft ownership and operational efficiency. Through our trusted network of advisors, we are also able to co-ordinate and facilitate legal, tax and VAT advisory services, and assist with the facilitation of finance and insurance as required.
Some jurisdictions allow the commercial operation of aircraft on their registers. For these, it is usually possible to charter your aircraft out to third-party users in order to offset some of your operational costs. However, some jurisdictions do not allow commercial operations, and so this is something to be mindful of in the planning phase of acquiring your aircraft.
Yes, although this is more common with light aircraft rather than executive aircraft due to potential liabilities that may arise through direct ownership. In fact, it is often recommended that high value luxury assets such as business jets and helicopters, are not owned in your own name to protect both yourself and your asset.
If you intend on using your aircraft to, from, or within Europe, you will need to manage exposure to the EU’s Value Added Tax (VAT) and customs duty. Usually, this will involve either full importation of the aircraft or Temporary Admission (TA), depending on the nature of your intended aircraft usage and the nationality of the UBO. The importation or TA procedure is generally very similar regardless of the aircraft’s point of entry into the EU. However, where liable to pay VAT, the rate at which this is payable and whether it is possible to have the VAT reimbursed at a later date will vary depending on a number of circumstances. As with any tax or VAT aspect, it is always recommended that you obtain the appropriate professional advice to ensure that your aircraft is eligible and its ownership is structured effectively to avoid triggering any VAT liabilities.
As the name suggests, fractional ownership simply splits the ownership of an aircraft into shares, or ‘fractions’ as they are commonly referred to. Fractional ownership allows owners to access most of the benefits of owning an aircraft independently, whilst splitting the cost of doing so with fellow co-owners.
Many aircraft ownership structures involve lease or sublease agreements between connected parties. Doing so may present fiscal benefits and form part of an efficient tax or VAT structure. Before proceeding with any form of ownership structure, it is essential to consider any fiscal benefits but, equally, any potential liabilities or issues that may arise from structuring the ownership a certain way. A professional tax or VAT advisor can help with this aspect of ownership planning.
Similar to a vehicle registration number, an aircraft registration is a unique code which is specific to a single aircraft and can be used to identify it. Depending on the jurisdiction in which the aircraft is registered, registrations may be numerical, non-numerical or alpha-numerical. Every registry has a unique prefix for aircraft registered, for example, the Isle of Man’s registry prefix is ‘M-’, followed by four non-numerical characters.
There are many factors to consider when deciding which jurisdiction is best to register your aircraft in. These may include how you intend to use your aircraft, any fiscal benefits, and whether it has a suitable legal and regulatory framework. For more information, check out our guide on ‘Where should I register my aircraft?’
Registering your aircraft in the Isle of Man can offer many benefits. The Isle of Man: has an internationally endorsed regulatory system;
It is also home to the Isle of Man Aircraft Registry, which is recognised for their:
In order to meet the eligibility criteria to be registered in the Isle of Man:
The registration process is generally straightforward, and turnaround times depend heavily on the collation, provision and processing times of documentation. Whilst registrations don’t typically ‘expire’, there are ongoing compliance requirements to keep your registration valid, including the annual renewal of the aircraft’s Certificate of Airworthiness.
The process to transfer registration varies across jurisdictions and usually involves de-registering an aircraft before allocating the registration to a new aircraft. However, some registries work on a single-use basis and do not allow the re-allocation of a particular registration. Therefore, it would be necessary to choose an alternative registration when changing aircraft.
Some jurisdictions allow the commercial operation of aircraft on their registers. For these, it is usually possible to charter your aircraft out to third-party users in order to offset some of your operational costs. However, some jurisdictions do not allow commercial operations, and so this is something to be mindful of in the planning phase of acquiring your aircraft.