How long does a boat last?

How long does a boat last?

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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

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By AnthonyDavidMain
20th Nov 2006 13:45

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

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By peter.blatch
20th Nov 2006 15:14

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?

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