As you have said, from 15th July 2020 a temporary reduced rate was introduced for supplies of holiday accommodation up until 12th January 2021. Holiday accommodation includes:
- any house
- flat
- chalet
- villa
- beach hut
- tent
- caravan
- houseboat
This list is not exhaustive.
HMRC had initially appeared to exclude accommodation in motor homes and narrowboats altogether from the temporary reduced rate, referring to them as means of transport rather than holiday accommodation. However, following a challenge by British Marine, HMRC quickly updated their guidance to allow the temporary reduced rate for boats held out as holiday accommodation.
HMRC have said that the hire of a boat can qualify for the temporary reduced rate, so long as it is suitable for holiday accommodation and is being held out for use as holiday accommodation. A boat that is hired out for a day for someone to enjoy the activity of sailing will not qualify for the temporary reduced rate.
The same principal applies to the hire of motorhomes and camper vans – where the hire is held out as holiday accommodation, the hire charge can be reduced rated. The reduced rate however would not apply to the outright sale of a motorhome.
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