Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Customs news

26 January 2005
Issue: 3992 / Categories: News
Customs Business Brief 35/2004 dated 4 January 2005; Customs Business Brief 1/2005 dated 19 January 2005

Residential ships

Customs have clarified their policy on the application of the zero rates for ships and houseboats.

'Qualifying ships' are zero rated for VAT purposes. A qualifying ship is defined as a ship which is over 15 gross tons and is neither designed nor adapted for use for recreation or pleasure. Such ships usually have clear features of a commercial design such as a hold specifically designed for carrying cargo commercial fishing equipment or the ability to carry or entertain large numbers of paying passengers. Recreational activities could include pleasure sailing or cruising on inland waterways. A ship that is either designed or adapted with the ability to be used for private recreation or pleasure cannot be a qualifying ship regardless of how the purchaser intends to use it.

'Houseboats' are covered by a separate zero rate. For VAT purposes houseboats are designed...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon