UK Budget announcement: more purchase opportunities for yacht crew?

Although the dust is still settling after the first Labour budget in 14 years it seems the level of property stock available in the UK is increasing, which could provide purchase opportunities for yacht crew looking to buy their first property or those wanting to add an additional property to their current investment portfolio.

Some economists and industry commentators have suggested ‘doom and gloom’ for the buy to let investment market in the UK following the changes introduced in Rachel Reeves announcements, but it remains that the rental market demand in the UK is high and so although investment properties may not be viable for some, they could still provide an attractive opportunity for yacht crew.

You may ask why yacht crew are potentially different to other landlords or those considering buying a property for investment, and the simple answer is that because of the Seafarers Earnings Deduction (SED) income generated from yachting is generally not taxable in the UK so many yacht crew are not utilising their UK personal tax-free allowance (£12,570) as it is not required. As such, if unused from any other income received, that personal allowance could allow the first £12,570 of any rental income received and declared each year from investment property to be tax free too.

This situation, which is fairly unique for yacht crew and seafarers, puts a completely different perspective on the profitability and viability of a potential purchase for investment compared to somebody who has already used their tax allowance through their earned income and therefore must pay tax at their prevailing rate (20%-40%-45%) on any additional rental income they generate.

Whether you are considering an investment purchase or a property to live in when back in the UK, early engagement with a mortgage adviser is recommended so that preparation can be done to get ‘mortgage ready’ well ahead of the time a mortgage may be needed. The mortgage adviser will be able to explain the different type of mortgage and answer any questions you may have. They will also provide expert advice and personalised hints and tips on how to prepare yourself to get the mortgage you need.

Are you superyacht crew looking to supercharge your financial future?

Crew FO have partnered with an experienced mortgage broker for many years and their advisers
understand the challenges faced by yacht crew when it comes to buying a property in the UK and
getting a mortgage. The advisers will be happy to discuss your circumstances and future
requirements at no obligation so that you are ready when the time comes to buy.

Get in touch with CrewFO here.