Does a residential canal boat attract capital gains tax when it is sold?

km1500

It is a wasting asset as it is moveable and has engines ie machinery. Note that if it was a houseboat powered by sail only it would not be a wasting asset !

In order to be a main dwelling it would need to be moored and have its engines removed.

theartfullodger

If, however, it has gone up significantly in value between when he purchased and when he flogs it then it might be liable for CGT.  I quite understand the point that it is usually considered a wasting asset. 

If that does turn out to be the case suggest he contacts an accountant specialising in this area (there can't be that many...)

caprikid1

"If, however, it has gone up significantly in value between when he purchased and when he flogs it then it might be liable for CGT."

It does not matter whether it has gone up significantly in value, it is how HMRC view it in terms of it's asset class.

Whilst it may change in the future there is a lot of money pumped into classic cars because they are still viewed from HMRC as a wasting asset.

It is important to remember that HMRC cannot have it both ways, they are smart !  The few people who make money on boats and classic cars are by far offset by those that lose money, so if HMRC were to accept Capital gains they also need to accept capital losses and they would not want to do that on classic cars or boats as most lose money and are therefore exempt from being used to offset. It is the asset class that HMRC puts an asset in that matters not whether it made a gain or a loss.

chanz4

sounds like registered as a continues cruiser on crt license, no wont attact cgt