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Tax implications of purchasing a narrowboat

Tax implications of purchasing a narrowboat

Scenario:  I've got a client who is a sole director/shareholder of his company who works in London during the week (he lives in the south west) and stays in hotels whilst working.  His solution to having to fork out for hotels etc during the week is to purchase a narrowboat, have it moored there and live in this whilst working but obviously use it privately as well (as a pretty expensive alternative to shelling out on hotel rooms!) for weekends away/family holidays etc.

Question is, is it more beneficial to him to purchase through his company or purchase as a personal asset not through the company?  I know that boats are classified as a wasting chattel and exempt from CGT, unless capital allowances have been claimed on it, then normal business asset rules apply, but can it be purchased as an asset for the company (it has nothing to do with the business activities, just somewhere for him to stay whilst away working) and claim capital allowances on it?

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22nd Feb 2016 12:07

Of course the company can purchase the boat. The company can purchase whatever it wants.

What you will probably have is eye-watering benefit in kind considerations.

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22nd Feb 2016 20:44

Narrowboat

Anything associated with boats and companies in my experience the revenue will look very closely.

Another solution might be to buy a narrow boat personally and lease it to a narrow boat hire company. Then do a deal for your company to lease your boat back from the hire company when you need it during the week. When you dont need it the hire company can use it for hiring and generate an income.

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