The UK commercial aviation market sources aircraft globally. A significant proportion of used commercial aircraft available for acquisition are on the US FAA N-register or other international registrations. Importing these aircraft to the UK G-register - or retaining them on N-registration where appropriate - involves finance, regulatory and tax considerations that differ significantly from a domestic purchase.
For UK AOC holders, the aircraft must typically be on the UK CAA G-register (or in some cases the Isle of Man M-register for operators using an Isle of Man AOC). Transferring an N-registered aircraft to G-registration requires CAA acceptance, which involves review of the aircraft's maintenance history, airworthiness documentation and modification status. The finance structure must accommodate the period between purchase and registration completion.
Import duty and VAT are significant considerations for commercial aircraft imports. Commercial aircraft are typically subject to 2.7% import duty on their customs value, though relief may be available in certain circumstances. UK Import VAT at 20% is charged on import but is recoverable by VAT-registered businesses. The finance structure needs to accommodate VAT bridging if VAT is not recovered before the first payment falls due.
DBF has experience in placing import finance for commercial operators acquiring aircraft from the US, Europe and beyond. We work with lenders and aviation solicitors experienced in UK import processes and can help coordinate the finance, customs, registration and airworthiness aspects of your import transaction.
Key Lenders for This Segment
| Lender | Rate from | Strengths |
|---|---|---|
| Investec | 5.8% p.a. | Specialist aviation, large tickets, strong covenants |
| HSBC | 6.0% p.a. | Global capability, complex structures |
| Close Brothers | 6.1% p.a. | Proven commercial desk, accessible |
| Paragon | 6.9% p.a. | Flexible on complex or unusual structures |
| Shawbrook | 7.2% p.a. | Accessible for newer operators |