The Legal and Tax Considerations In Acquiring A Private Aircraft
June 7, 2009 by Private Jets Magazine · Leave a Comment
The following is a guest post by David Dannreuther, Partner and Philip Munro, Associate, of Withers LLP. Withers is an international law firm with capability to act in aircraft transactions through its Hong Kong, London, Milan, New Haven and New York offices.
The credit crunch and the global recession have plainly had an impact on the private aircraft market with second hand aircraft now marketed at a discount on the prices previously achieved and with there being increased delivery positions available on new aircraft. That said, as the recent interest in the first contracts to acquire the Gulfstream G650 showed, the private aircraft market remains busy and acquisitions continue to be made. A number of legal and tax considerations impact on the acquisition of a private aircraft that should be considered in advance of a purchase to ensure that the purchase takes place through a structure that is optimal from a tax, liability and operational perspective. All too often these considerations are neglected.
