Ownership of luxury assets such as yachts, private aircraft, classic cars and art is increasing. Such assets may be acquired for lifestyle reasons or as an investment. Regardless of the motivation, careful consideration should be given to creating a tax efficient ownership structure.
The acquisition of luxury assets can provide clients with a great deal of pleasure. However, the ownership and maintenance of such acquisitions can lend itself to considerable responsibility and cost.
At Highvern we can assist with establishing and administering tailored ownership structures that are both tax efficient and offer operational efficiencies in the upkeep of the asset.
In order to do this we work closely with a wide variety of professional advisers to ensure that we obtain all of the tax and legal knowledge needed to properly administer high-value assets that are mobile in nature. In the case of a private jet or a superyacht this will include sourcing advice on VAT payable as a result of commercial and private ownership. With regard to works of art, advice will be required on the purchase and sale both within and outside the EU.
We also administer ownership structures for artwork, jewellery, vintage car collections, and other forms of collectibles. Such investments are often referred to as passion investments and require a careful understanding not only of the market sensitivities of holding such assets but also the family’s long-term wishes in relation to retaining, building, selling and funding a collection.
Our structures which will not only safeguard accumulated assets during life will also ensure they are managed appropriately after the original owner’s death and that they can be enjoyed fully, whether aesthetically or financially, by future generations.