Boating expenses

The taxpayer a writer and journalist lived in London and owned a boat normally moored in the UK. He used it when taking photographs and obtaining material for a book.

In early 2006 he began a work about life in France. The boat was transported to Port Grimaud in Provence-Alpes-Côte d'Azur where it remained for some years.

The taxpayer and his wife lived on the boat during the summers of 2006 2008 2009 and 2010. He spent short periods onboard at other times of the year carrying out work on his book.

In his 2006/07 tax return the taxpayer claimed deductions against his income in respect of preparing and moving the boat to the south of France and the cost of mooring it in Port Grimaud.

HMRC disallowed the claim on the basis that under ITTOIA 2005 s 34...