Annex 1: Minor changes in the law made by the Act: Change 150: Definition of “houseboat” given by section 878 relevant to sections 787 and 809
This change provides a single definition of “houseboat”, relevant to sections 787 and 809.
For the purposes of paragraph 3 of Schedule A (see section 15(1) of ICTA) “houseboat” is defined as a boat or similar structure designed or adapted for use as a place of human habitation. Paragraph 3 is re-written in section 266. The same definition is attracted by paragraph 4 of Schedule A (re-written in section 308).
But “houseboat” is not defined in the definition of “residence” in paragraph 7 of Schedule 10 to F(No 2)A 1992 (rent-a-room relief) or in paragraph 7(3) of Schedule 36 to FA 2003 (foster-care relief). Accordingly, “houseboat” has its ordinary meaning in those provisions. The definition of “houseboat” in section 878 is wider than the ordinary meaning: for example, it includes structures which are similar to boats (but are not boats).
In relation to section 787 (which re-writes paragraph 7 of Schedule 10 to F(No 2)A 1992), a structure covered by the extended definition of “houseboat” may be covered by the reference to a building or part of a building. But if not, the effect of moving from the ordinary meaning of “houseboat” to the definition in section 878 is to widen the range of residences in relation to which rent-a-room relief is available.
In relation to section 809 (which re-writes paragraph 7(3) of Schedule 36 to FA 2003) the definition of “residence” used in section 787 applies. Consequently, the point made in relation to section 787 is also relevant. In referring to “the” residence, paragraph 7(3) of Schedule 36 to FA 2003 assumes that the accommodation which is actually provided by the foster carer for the child is caught. That would include accommodation comprising a structure covered by the extended definition of “houseboat”. Therefore the application of the extended meaning of “houseboat” has no effect in relation to foster-care relief.
The change is in taxpayers’ favour in principle and may benefit some in practice. But the numbers affected and the amounts involved are likely to be small.