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I have a client who is currently importing second-hand farm machinery from the US into the UK. The machines are sold in the UK, usually to collectors rather than for business use. The machinery is sourced by someone who lives in the US and has done so since emigrating from the UK many years ago and has dual citizenship; he does not have any UK assets and I assume that he would be classed as resident in the US.
I have a client who is currently importing second-hand farm machinery from the US into the UK. The machines are sold in the UK, usually to collectors rather than for business use. The machinery is sourced by someone who lives in the US and has done so since emigrating from the UK many years ago and has dual citizenship; he does not have any UK assets and I assume that he would be classed as resident in the US.
The machinery is sold by my client and, at present, all the funds are sent back to the US to purchase more machinery. When funds allow, profits are to be split equally between the two partners.
Would it be best to have a US company with my client as an employee, or two separate trading vehicles, one in the US and one in the UK? How should the machinery be valued? At the exchange rate when it arrives in the UK or when it leaves the US? What about other acquisition costs, e.g. travelling to view the machinery and transportation to the port? What VAT implications are there? Currently, import duty is paid on the goods when they arrive in the UK; but at present, turnover is below the registration threshold. I expect turnover to increase.
Any help to the above questions would be appreciated.
(Query T16,592)
