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Does a residential canal boat attract capital gains tax when it is sold?
For many years my son has lived on a canal boat in London. (He is paying off a small family loan on part of the purchase cost over a 5 year period at about £400 a month with a couple of years to run). Even though the boat is his main residence, the Canal & River Trust insist that house boats must move to a different mooring every fortnight. Consequently, as he doesn't have a fixed address unless he permanently moored in a marina, he registered himself at my address for voting purposes and to have an address for correspondence. Two years ago he went abroad and rented his boat to a friend for about £400 a month to cover the loan but he returns permanently to the UK in a few weeks.
Question: Am I correct that if and when he sells the boat he would be liable for capital gains tax unless he can prove it is his main residence. If so, how can he prove it is his main residence without having a fixed address for the boat. The only 'address' he has is mine. This must be a common problem for people living on canal boats. Any advice would be much appreciated
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