§ 24. Mr. Jesselasked the Chancellor of the Exchequer in what circumstances houseboats, whether moving or stationary, are treated by his Department as houses rather than boats in respect of (a) value added tax, (b) tax relief on interest on loans for purchase and (c) capital gains tax.
§ Mr. MooreA houseboat is zero-rated for value added tax provided that it is designed or adapted for use solely as a place of permanent habitation and it has neither the means of self-propulsion nor is capable of being readily adapted for that purpose. If these conditions are not met or if it is used or held out as holiday accommodation, it is standard-rated.
For mortgage interest relief purposes a houseboat, whether moving or stationary, is treated like any other property provided it is designed or adapted for use as a place of permanent habitation.
For capital gains tax a houseboat will normally be an exempt assset, but if this is not the case, it may, exceptionally, qualify as a dwellinghouse.