Cattels with a useful life of under 50 years are wasting chattels and exempt.
Boats (in my case river narrowboats) are clearly chattels with a finite lifespan, but how long? In many cases, this will depend on how they are maintained and whether engines and hulls are substantially renovated/replaced. If a gain is made - essentially because the boat was originally built from scratch, will it be exempt, or must a CGT comp be made?
Dave Bonser
Replies (2)
Please login or register to join the discussion.
Take a look at...
Dave,
take a look at HMRC's Capital Gains manual at CG76909 et seq, which will hopefully be of some help.
Best regards
Anthony
Wasting chattels
HMRC generally consider boats to be wasting chattels - see CG64328 etc. But.........
If the boat is used as a residence this may not be the case although a permanently moored houseboat connected up to main services may be exempt as a principal private residence.
If the boat has been used in a trade and capital allowances have, or could have, been claimed the CGT exemption is lost ( TCGA 1992 s45(2)).
Was the narrowboat ever used in a trade?