The story announced that HMR&C has a team of anti-avoidance experts solely focused on top of the market boats costing between £500,000 and £2m. The schemes, which exploit the differences in VAT rules between European Union countries, avoid tax by using a sham ownership structure to give the appearance that the yacht is chartered or leased.

‘We’re not aware what prompted the FT article as this is not a new issue,’ Rob Stevens, chief executive of the British Marine Federation (BMF) told BB. ‘The BMF is aware of a team of HMR&C officers attending marinas around the country investigating potential VAT abuses.

‘The BMF will continue to work closely with customs officials to ensure that they have a full understanding of the issues facing the industry and to ensure that their work brings confidence to the market,’ he concluded.