Registry: Pleasure yachts

Pleasure yachts have been registered in the Isle of Man for many years and the Island is an economic and efficient jurisdiction in which to register title to the property in a yacht.

Several companies in the Island also offer facilities for the management of larger pleasure yachts. Pleasure yachts registered in the Isle of Man enjoy the same benefits applicable to merchant ships and commercial yachts:

• Favourable treatment for taxation
• Minimal costs and no annual tonnage dues
• The right to fly the Red Ensign
• Absolute security of mortgages and title registered in the Isle of Man with priorities of charges clearly established in accordance with English law
• Association with a respected and reputable jurisdiction

The requirements for a qualified owner apply to pleasure yachts in the same manner as they do to merchant ships and commercial yachts. In addition a pleasure yacht must be used purely for pleasure and the prospective owner will be required to sign a declaration to the effect that the vessel is purely a pleasure vessel. The legal definition of a yacht used purely for pleasure in Manx legislation is any vessel which at the time it is being used:

• Is wholly owned by an individual or individuals and is used only for the sport or pleasure of the owner or immediate family or friends of the owner; or
• Is owned by a body corporate and is carrying only such persons as are employees or officers of the body corporate or their immediate family or friends; and
• Is on a voyage or excursion which is one for which the owner does not receive money or money's worth for, or in connection with, the operation of the vessel or the carrying of any person other than as a direct contribution to the expenses of the operation of the vessel and no other payments are made by or on behalf of or for the benefit of the users of the vessel other than by the owner; or
• Is owned by a body corporate but pursuant to a long term lease agreement is used only for the sport or pleasure of the lessee and the immediate family or friends of the lessee if an individual or the officers and their immediate friends and family if a corporate lessee. Such lease agreements must specify that:
  • the vessel may only be used for private purposes and must not be used for commercial purposes;
  • the vessel must not be sub-leased or chartered; and
  • no other payments are made by or on behalf of, or for the benefit of users of the vessel other than by the lessee.
• Is wholly owned by or on behalf of a members club formed for the purpose of sport or pleasure and at the time it is being used is used only for the sport or pleasure of members of that club or their immediate family and any charges levied in respect of that use are paid into club funds and applied for the general use of the club and no other payments are made by or on behalf of, or for the benefit of users of the vessel other than by the club.