Is there VAT on houseboats?

Houseboats are exempt from VAT.

Do people who live on narrow boats pay council tax?

Just living on a narrowboat does not make you responsible to pay council tax.

Is buying a narrowboat a good investment?

A narrowboat, or a widebeam boat should be considered as a second home from home, or, perhaps even as a new primary home for some buyers. The purchase of a narrowboat is indeed a large investment, however it’s an investment for your future, with happier and more peaceful times ahead.

Can you claim VAT back on a boat?

In short, yes it can. If a boat is exported or sold outside of the EU it can lose its VAT paid status.

Does 5% VAT apply to caravan sales?

After much political wrangling, the static caravan industry and the government were able to agree on a negotiated tax rate of 5% applied to static caravan sales. This rate came into force in April 2013. If you are buying a second hand static caravan that was occupied prior to April 2013 then we have some great news!

Do you pay VAT on second hand boats UK?

VAT is not chargeable on the sale of second-hand boats between private individuals but VAT is charged to the seller for the services rendered by the broker. The broker will usually charge the seller a commission for these services.

Do you pay VAT on a used boat?

Boats are considered the same as any other goods and are therefore taxed at 20% VAT.

Is VAT charged on second hand caravans?

If you buy and sell used caravans or houseboats you do not have to account for VAT on the full value of the removable contents but may use a margin scheme to calculate, and account for VAT on the difference (or margin) between your buying price and selling price.

Do you pay VAT when selling a caravan?

Depending on a number of different factors, the sale of a new caravan or lodge may take one of three different VAT liabilities – namely: subject to VAT at the standard rate (20%), the reduced rate (5%) or the zero rate (0%).

Is living on a canal boat cheaper than a house?

Is living on a narrowboat cheaper than living in a house? ‘Yes’ – for most people. Boats are generally cheaper to buy or rent, buy an old cruiser for a few hundred pounds! Moorings usually are cheaper than property taxes, even free as long as you keep cruising!

Do narrow boats depreciate?

Unlike with motor vehicles, the depreciation rate is a lot lower for narrowboats, meaning buying a brand new barge can often make good financial sense. A new boat will usually include a warranty too, so alongside the lower risk of maintenance costs – buying brand new could be the best option.

Can you buy a narrowboat through a private seller?

Alternatively, you can buy through a private seller. You will always get more information on the true nature and quirks of a boat from the owner themselves and they are often more flexible. What documents and paperwork will you need to buy a narrowboat? Having the correct paperwork in place when you buy your narrowboat is important.

Do you need a solicitor to deal with VAT on boats?

Unfortunately, there are also many cases in which the legal situation is not clear cut, especially as VAT on boats is a tax on a transaction – the sale or importation of goods or services – not on the vessel itself. It’s in these cases that an expert broker or solicitor can help out significantly,…

What should I look for when buying a narrowboat?

Think about whether you are after a restoration project, something pristine or top of the range and do a bit of research to get an idea of what the sort of narrowboat you are looking for cost. What are the estimated running costs of owning a narrowboat?

What happens if a boat is sold outside the EU?

Complications also arise because a VAT paid boat can lose this status. This will happen, for instance, if it’s sold outside the EU – even if purchaser and vendor are EU residents. VAT must then be paid if the boat is brought back into the EU.