Does HMRC class a boat as a "home"?

[Libz]

They can and do. I wrote to them to see if I’d get a reply and I did. They answered some questions directly but refused to comment on a specific scenario as this constituted tax advice. They confirmed that even if I remained a resident, I could still fail the residency test. So in effect they’d charge tax as though I’d emigrated even though a remained a UK for tax purposes.

Ive followed up asking directly if they classified a boat as a “home”. This isn’t tax advice. It has nothing to do with postcode since they will classified a home aboard as a “home” and there are cases that a motor home could be a home. If they write back I’ll post it here for all to see and perhaps it may help someone else in the future.




I have taken professional advice but since there is. I case law on this specific scenario then none of them are willing to stick their neck out and give a direct answer. Most say it should be fine, other say it’s not worth taking the risk.

And not taking to risk is telling a sailor he can’t go to sea. And that’s a god given british right Id day!

Hi, in similar situation, did you get an answer to this please ?

 

[Tim Good]

Hi, in similar situation, did you get an answer to this please ?

They did reply and wouldn't confirm if a boat was a home or not. But I did have a very pragmatic conversation with someone that was fairly high up in their department. He was quite clear that the HMRC used its rules to prevent people who have permanently emigrated from gaining tax reliefs. He clearly said they were not trying to get people that went on extended holidays or travel as that was not the purpose of the rules. But he did confirm that you could technically fail the residency test. He also did conceed that using the existing residency test was a bit of lazy was of covering the masses rather than dealing with cases on their own merits.

I think it comes down to how you interpret things. You either follow the rules exactly or you interpret them de facto. In real life and judge will interpret the law based on what it was designed to do. I doubt the HRMC will come looking for people that decided to sail around the world, then force them to sell a perfectly healthy UK business just to pay a tax which was never even realised as the business was never sold. I just doubt the courts would want to set that sort of crazy precedent.

I also asked an account and a lawyer the same questions of the scenario. You can guess the answers. The Accountant interpreted by the book and said you must not fail the residency test else I'd be at risk. The lawyer said, yes you'd fail the residency test but the likelihood in their experience HMRC would come knock is very low... additionally they said... "how would they ever know you failed the test, as you wouldn't sell your business and make a capital gain, so they'd never ask the question".

Hope this kind of helps.

 

[sailaboutvic]

Just to take this one step further.
We know of people who have brought their boat in the EU and lived on them full time , they now going to take them back to the UK and as the boat has been their only residents ie no other property in the UK and they will be living on the boat once back , the respond from HMRC is that they won't have to pay vat again even tho they wasn't the once that exported the boat .
Let me say I not seen the respond with my own eyes but this is now coming from three boat who do not know each other.

 

[Tranona]

Just to take this one step further.
We know of people who have brought their boat in the EU and lived on them full time , they now going to take them back to the UK and as the boat has been their only residents ie no other property in the UK and they will be living on the boat once back , the respond from HMRC is that they won't have to pay vat again even tho they wasn't the once that exported the boat .
Let me say I not seen the respond with my own eyes but this is now coming from three boat who do not know each other.

Presumably they are using the "Returning Resident" relief and the boat will be classed as a chattel. Different relief from "Returned Goods" and different rules.

 

[Missy666]

Hi, in similar situation, did you get an answer to this please ?

Hi, in similar situation, did you get an answer to this please ?

Hi, in similar situation, did you get an answer to this please ?

 

[Missy666]

Your boat is your home. Go to Crisus for help. They do consider each case on a individtual basis. Tax man HMRC etc.

 

[Missy666]

You can use a lawyer's office as an address. Probably need to use one if their services like gave them draw up a will etc

 

[syvictoria]

You can use a lawyer's office as an address. Probably need to use one if their services like gave them draw up a will etc

The question isn't about getting a UK address, it's about maintaining residency for tax purposes. A solicitor's address unfortunately doesn't help with the latter.

 

[Seven Spades]

The best accountant I had would never every phone HMRC he would always go to the legislation. If HMRC disagreed with his interoperation he would take them to the commissioners, he usually one and was written up in the Times more than once. He saved me fortune in transferring a property without paying stamp duty, he was tenacious, he took on both my solicitor and the land registry over that issue.

I don't know where you find an accountant like that these days but if anyone knows let me know. Sadly he passed away about four years ago.