British Corporate Ownership and Registration on the British Register of Shipping offers security and reliability. It allows the British Flag (the Red Ensign) to be flown from the yacht with the International Recognition, and Protection afforded to it.

British yachts, wherever situated in the world, may seek assistance from any of the many British Embassies and Consulates throughout the world.

On registration British Law applies to the yacht and the registration procedure provides conclusive proof of ownership of the yacht thus making the proving of legal title on transfer straightforward.

The Register contains all the vital details concerning its yachts and requires all legal mortgages to be registered there.

Consequently, by merely inspecting this public register, it can be ascertained whether a yacht is free from mortgage or not.

This provides a two-fold bonus:

1. Title can be easily inspected offering the buyer security and title as well as enabling the seller to dispose of his yacht easily and speedily.
2. As the Register is open to inspection, it is easier and quicker to obtain mortgages by producing a transcript of Register to the potential mortgagee showing conclusively that the vessel is free from encumbrances.

The following are a number of the advantages of British registration.

• Reliability and security.
• Skippers need not have certificates of competency.
• There is no requirement for the yacht or owner to visit Gibraltar.
• Confidentiality can be maintained as the owner need not appear on the records of the Company.
• Conclusive proof of title.
• Mortgages are easier to obtain.
• Various tax advantages.

To register a yacht on the British Register a foreign national must form a British Company as only British persons can own British registered yachts. The Gibraltar Limited Company isdeemed a 'British Person'. Therefore, any foreign national, through a Gibraltar company, can own and register his yacht on the Register of Shipping. The yacht may be registered in Gibraltar or in any other British Port.

The usual situation is that an owner wishes to own his yacht through a nominee company and the yacht registered on the British Register of Shipping.

First of all the company is formed to own the yacht and declarations of trust are executed by our nominee company in favour of the owner.

Meanwhile a name for the yacht is cleared with the Register of Shipping.

The previous owner, or the client if he already owns the yacht, signs a Bill of Sale in favour of the Company. If the yacht is new the Builder's Certificate is made in favour of the company. Before the yacht can be registered it must be surveyed by an authorised measurer and a tonnage measurement taken. This survey merely ascertains the tonnage and is in no way an examination of the yacht's condition. The survey is arranged by us, wherever the yacht is lying, and the client pays the surveyor's fees.

Yachts holding International Tonnage Certificate are advised that under the rules for the registration of ships under the Merchant Shipping Acts of the United Kingdom, the vessels must be measured by authorised Surveyors recognised by the Department of Trade for the purposes of British Registry. Accordingly the yacht will still require a tonnage survey.

Once we received the Bill of Sale and the necessary applications are filed by us at the Port of Registry a Carving and Marking Note will be issued. The Carving and Marking contains the registered tonnage, official number, name of yacht and the Port of registry. A Plaque will have to be made containing the registered tonnage and the official number. This plaque is then placed inside the yacht.

British corporate ownership offers tax advantages. Provided the owning company is Tax-exempt the company's assets, namely the yacht, may not form part of the owner's net wealth and therefore no Estate Duty may be payable on the death of the owner and no tax payable on charter income.

• No import duty is payable on the yacht.
• No V.A.T. is payable.
• No annual taxes levied.
• There is no inheritance tax and no death duties payable when the owner dies.
• No taxes are payable on the sale or transfer of yacht.
• No exchange controls exist and therefore monies can be held or transferred in all currencies.

Whilst taxes are not payable in Gibraltar clients must have regard to the import regulations of the particular country in which the yacht is moored.

A yacht owner can own the company in his own name or it can be held for him by nominee a company. If the company is held in the owner's own name, then he appears as owner of the company at the Companies Registry in Gibraltar which is open to public inspection.

Alternatively, if the company is held through our nominee company the nominee company's name would appear on the record and the true identity of the owner remains confidential.

The rock of Gibraltar has now set up its new British Category I Status Merchant Shipping Register. This came into force on 19th March 1996 as a result of a recent Order by the Privy Council which added Gibraltar to the list of United Kingdom Registers under the 1988 Merchant Shipping Act.

A Maritime Administrator will have primary responsibility for the Register which will have Category I status with unrestricted registration, except for nuclear powered vessels and fishing vessels. A survey has been concluded between the UK and Gibraltar and is designed to enforce uniformity of standards. Initially the Maritime Safety Agency will provide assistance to the Gibraltar Maritime Administrator who will soon have its own independent staffing and register, and become completely self-sufficient.

Lloyd's Register, American Bureau of Shipping, Germanischer Lloyd, Bureay Veritas and Det Norske Veritas will be operating as Classification Societies although the Maritime Administrator can use surveyors of other classification societies so long as he can appoint them himself and accepts responsibility for them.

One special feature of the Gibraltar Register will be the strict security for mortgagees since no ship will be de-registered without the mortgage being discharged first or without the mortgagees' consent.

The legislation states that in addition to British citizens (including Dependent Territory citizens and overseas citizens), nationals of the European Union countries and citizens of other relevant countries shall be qualified to register ships in Gibraltar as individuals.

Corporate bodies established under the very favourable Company Tax laws of Gibraltar, or the laws of a member state of the EU, or a state to which the Agreement on the European Economic Area applies, will also be qualified to own Gibraltar ships.

The legislation also includes facilities for provisional registration, bareboat registration for renewable two year periods and also gives the Government wide powers to make regulations and grant exemptions. Manning regulations will generally follow international conventions.

Gibraltar is also a competitive and popular bunkering port, for crew changes etc. The port is fast and trouble free. Gibraltar's Cammell Laird (Gibraltar) Ltd ship repair yard is developing well. The new year has seen the establishing of Superyacht Servicing and refurbishment facilities at the yard and Ship Managers are also looking to relocate to Gibraltar.

The application of English Admiralty Law and Practice makes Gibraltar a popular jurisdiction in which to enforce maritime claims. The procedure from arrest to sale can be completed within as little as eight weeks.

The Merchant Shipping Register, which will complement the existing Yacht Register, will be attractive for owners because it will be a Red Ensign Register and be located within the EU, while at the same time offering very low levels of taxation and simple registration procedures. The Government Tax on a ship owning company will be flat £240 annually, with highly favourable Tonnage Taxes.