Income from houseboat rental - SE or Property Income?

Income from houseboat rental - SE or Property...

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Previous posts on this site seems to suggest that Income derived from the rental of a narrowboat should be Self Employment income because the HMRC PIM states Income from canals to be excluded from Property Income.

Are we sure about this?  eg, if I live on my Narrowboat in the same location for over two years, and then decide to move out and rent it to a tenant surely that suggests Income from Land and Property?

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By Cloudcounter
23rd Jul 2013 08:40

Land and property

The notes to the land and property pages suggest that "income for the use of a caravan or houseboat at a fixed location"  is retuned on the land and property pages.  Top of page 8

(My original post thought otherwise! Hence the about turn.)

 

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Replying to lorna201106:
blue sheep
By NH
24th Jul 2013 07:48

land and property

Thanks, I think it hinges on whether or not it is at a fixed location.

Now, provided it is land and property income, are Capital Allowances available?

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By DMGbus
23rd Jul 2013 08:54

Difference

There is an important subtle difference between a Narrowboat and a House.

A house is usually immoveable and inseperable from the land that it stands on - it is "Land and Property".

A narrowboat is certainly moveable - like a caravan, like a mobile home, like over watercraft - it can  be sold independently of any location where it sits.

 

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By Steve Kesby
23rd Jul 2013 12:54

Mooring?

Presumably you have a mooring (that you own or rent) with a large lump of wood floating on it that you used to live in and that now someone will live in.

When they pay you rent, only a small proportion of it relates to the use of the large lump of wood. The majority of the rent will be for the mooring.

It is the case that income from canals is assessed as a trade (S.12 ITTOIA 2005 refers). But you don't have a canal; you have a mooring along a canal with a large (habitable) lump of wood floating on it.

Land is defined in the Interpretation Act 1978 as including "buildings and other structure, land covered with water, and any estate, interest, easement, servitude or right in or over land".

So, assuming you have a mooring, what you have is income form land and property and you might even be able to claim capital allowances on your large lump of wood, as I understand is the case for fixed caravans.

If you don't have a mooring then all you have is a trade of large lump of wood leasing.

Apologies to you large lump of wood, by the way. I'm sure *she* has a name.

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By dialm4accounts
23rd Jul 2013 13:52

Wood or steel?

Narrowboats are usually made of steel nowadays, Steve :)

Sorry to be pedantic, but hey, I am an accountant.

M

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By Steve Kesby
23rd Jul 2013 14:02

I can't win!

I was sure some sort of metal was used, but if I'd opted for a large lump of metal of any description., some pedant would have come along and pointed out that large lumps of metal don't float as a rule.

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Replying to legerman:
Euan's picture
By Euan MacLennan
24th Jul 2013 09:52

Not even when they are ships?

Steve Kesby wrote:

I was sure some sort of metal was used, but if I'd opted for a large lump of metal of any description., some pedant would have come along and pointed out that large lumps of metal don't float as a rule.

Archimedes worked that out in the third century BC!

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By dialm4accounts
23rd Jul 2013 14:54

Sorry, Steve

Being a keen boater, I had to make the point :)

M

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By suepalterman
29th Jul 2013 13:36

Full of holes

Metal boats -  not only do they not float, but they also get metal worm.  One would hope Capital Allowances were available.

 

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Replying to lionofludesch:
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By spurs1952
31st Jul 2013 07:59

ERRR

Metal boats do float.  If not can someone please let our Royal Navy know.

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7om
By Tom 7000
29th Jul 2013 13:52

capital allowances

I dont think you will...I tried it once a while ago...and the tax inspector said NO!

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