VAT Guidance On Houseboats Issued

[Alan de Enfield]

Just tidying up my VAT for the year end and came across this :

 

7. The VAT treatment of houseboats

7.1 Definition of a houseboat

A houseboat is defined for the purposes of VAT as being a floating decked structure which:

• is designed or adapted for use solely as a place of permanent habitation
• does not have the means of, and which is not capable of being readily adapted for, self-propulsion

7.2 Self-propulsion

This term refers to any vessel that is either:

• independently propelled
• not independently propelled but could readily be adapted to be capable of self-propulsion, for example by installing an engine, propeller or mast

It’s unlikely that a vessel such as a barge or a yacht would be regarded as a houseboat for the purposes of VAT because they’re likely to lend themselves to being readily adapted.

7.3 How to treat the sale of a houseboat

If you sell a houseboat or let it on hire for towing away to a mooring of your customer’s choice your supply is zero-rated.

Otherwise the sale of a boat, which is not a houseboat as defined above, is normally standard-rated.

7.4 Fixtures, fittings and removable contents

These are treated in the same way as caravans.

7.5 Supplies of accommodation in houseboats

If you let accommodation in a houseboat already sited at a mooring, the VAT treatment is the same as for caravans - see section 5.

7.6 Moorings for houseboats

If you supply a mooring for a houseboat the mooring is exempt.

If you supply a mooring for any other type of vessel, then your supply is standard-rated unless it qualifies for zero rating as explained in Notice 744C: ships, aircraft and associated services.

7.7 Charges for delivery, sitting and connection to mains services

The VAT treatment is the same as for caravans - see paragraph 3.2 and 3.3.

7.8 Garages and parking spaces provided with houseboat moorings

The supply of a garage or parking space to the owner of a houseboat is exempt if:

• you’re supplying it together with the mooring
• it’s reasonably near to the mooring

[GUMPY]

If the boat is large enough you can still go down the "qualifying ship" route and get a 0% VAT rate.

[AndrewIC]

I have a feeling, but am not currently in a position to check, that the “not readily adapted” wording is the same as that for Houseboat Certificates?

[Alan de Enfield]

11 minutes ago, AndrewIC said:

I have a feeling, but am not currently in a position to check, that the “not readily adapted” wording is the same as that for Houseboat Certificates?

I think that C&RTs definition of houseboat differs, in that they are allowed an engine for 'occasional movement'

 

 

Movement of houseboat

(1)The houseboat may be moved from place to place but while being so moved may not be navigated for hire

(2)While the houseboat is in the course of being moved the certificate shall be deemed to be—

(i)a pleasure boat certificate for the purposes of Part II of the Act of 1971, where the houseboat is on a river waterway within the meaning of section 4 (Extent of Part II) of that Act; or

(ii)a pleasure boat licence issued by the Board, when the houseboat is on any other inland waterway;

and its use at such times shall be subject to any conditions for the time being in force for the control of pleasure boats and the holder shall comply with any requirements made by or under any enactment applicable to pleasure boats.

[AndrewIC]

You’re right. I’ve found the wording in this document, where CRT points out that the HMRC definition is different. Knew I’d seen it somewhere

https://canalrivertrust.org.uk/media/library/6465.pdf