Log in
Article search:

Q & A

VAT on Narrowboats

Hello - I am just wondering if anyone has come across zero-rating a newbuild narrowboat as a primary residence?
Any help much appreaciated.
Thank you

Asked by: Amanda Grandison  | 9.29pm, Thursday 23 September

WW says:

Zero-rating narrowboats is very unlikely to be permitted.
In autumn 2009, HM Revenue & Customs confirmed that live-aboard "barges" are no longer subject to VAT. The exact phrase is "Dutch barges and similar vessels that are designed and supplied for use as the permanent residence of the customer".
The guidance doesn--t specify what "similar vessels", but the minimum size for what HMRC call a 'qualifying ship' is 15 gross tons. A gross ton is in fact the length, beam and depth (in metres) multiplied together, then by 0.16. HMRC defines the depth as being below the gunwales, which means that narrowboats are unlikely to qualify.
You can read the official statements at http://www.hmrc.gov.uk/manuals/vtransmanual/VTRANS110560.htm and http://www.hmrc.gov.uk/briefs/vat/brief3809.htm .

Richard Fairhurst  | 10.01AM, Friday 24 September

You must log in to post an answer.