We seem to have several threads running here on the same subject, below is one I posted a while back, I don't apologise for repeating it as it is relevant to the above line of thought. Namely that VAT Customs and Excise laws may be trifled with the same way you'd try to dodge paying a parking fine.
Dangerous! Very, very dangerous. Interestingly attitudes like this always come from those who have never had to get into hand to hand combat with these licenced thugs. Take the old saying innocent until proven guilty, reverse it, and that is your starting point.
In my experience Her Maj's Cust & Excise are not to be trifled with. They are not interested in standing around and chewing the cud. These are the people who have stronger powers than the police they don't need to wait for a ruling from the courts they can enter your property at any time without a warrant and can take what they want.
I wouldn't recommend anyone convincing themselves that their own interpretation about the laws of vat are worth a fig.
This is a governmental department that buys its company cars from auction, because they are used to them being rammed and damaged by upset "customers"
As interesting as it is to debate any subject, especially when it concerns interpretation of law be careful. I urge anyone to take the worse case scenario for themselves as a default outcome when trying to prove you got it right and it was HMC&E who made a mistake. Even in the unlikely event that after many costly appeals you are proven to have a case, chances are they will have already ceased your property, not looked after it too well and you'll be lucky to get an apology.
If the written description of a VAT ruling sounds vague, I can assure that is for their advantage and not yours.
As for the issue of a boat not having fixed furniture nor an engine being Vat excempt, then I'll just pop out to unscrew the table in my cabin cruiser, remove the outboard then I'll see you in the VAT free queue at the chandlers' eh?