Readers’ forum: Tax consequences of selling moored boat

My client has owned a houseboat for many years. He owns a separate home.

For many years he used the houseboat at weekends and did not have it permanently moored or permanently affixed to mains services.

As he has got older however he wants a more permanent arrangement and so his houseboat is now moored and is permanently connected to mains services. He still stays in it during some weekends but also allows friends and family to stay on the boat when he is not there. He doesn’t charge rent but he asks his guests to pay a contribution towards expenses.

He has asked me what will happen when he sells it. As I understand it a houseboat is exempt from capital gains tax unless it is permanently moored (it can be regarded as a residence when it is permanently moored). Would I have to time apportion...