Legal guidelines on paying council tax if you happen to stay on a ship
The rules on council tax are complicated if you live on a houseboat or in a marina
Many people choose to live on a houseboat for a quieter life
Greens leader Zack Polanski has admitted he may have failed to pay the correct council tax while living on a London house boat. Mr Polanski had faced mounting questions over whether the houseboat, moored in east London, was his primary residence.
A Green Party spokesperson described the situation as an “unintentional mistake” and said he had “immediately taken steps” to pay any tax owed. “Until relatively recently, Zack was living on a houseboat, which came with its own unique practical circumstances and considerations.
“He has immediately taken steps to pay any council tax he may be found to owe. Zack apologises sincerely for the unintentional mistake.”
The Green Party previously told The Times newspaper Mr Polanski rented a room at another address where council tax was included in the rent and only stayed on the boat “occasionally”. Government guidance states that a person may be liable for council tax on a boat if it is their “sole or main” residence.
The Daily Mail reported that Mr Polanski was registered to vote at a building near the marina, which he is also said to have used as a mailing address.
Tax lawyer Dan Neidle, founder of Tax Policy Associates, analysed Mr Polanski’s situation this week and wrote: “If the boat was in fact Mr Polanski’s ‘sole or main residence’ then he and/or his partner should have registered for, and paid, council tax for those three years.”
Whether you pay Council Tax while living on a boat depends entirely on where you are moored and whether that boat is your sole or main residence. The rules essentially split boaters into two categories: those with a permanent “postal address” and those who keep moving.
1. Residential Moorings (Council Tax applies)
If you have a permanent residential mooring and the boat is your primary home, you are generally liable for Council Tax.
- The “Dwelling” Rule: Under UK law (specifically the Local Government Finance Act), a boat and its mooring together are treated as a “dwelling” if they are used as a sole or main residence.
- Banding: Most houseboats fall into Band A (the lowest tier).
- Billing: You will usually receive a bill directly from the local council, just like a land-based homeowner.
- Exemptions: If the mooring is empty (the boat is away for a significant period), you may be able to apply for a Class R exemption, which can reduce or pause the tax for that period.
2. Continuous Cruisers (No Council Tax)
If you do not have a home mooring and instead “continuously cruise” (moving every 14 days as per Canal & River Trust rules), you generally do not pay Council Tax.
- Because you lack a fixed “hereditament” (a specific piece of land/water that you occupy exclusively), the council has no “dwelling” to tax.
- The Trade-off: While you save on Council Tax, you must strictly follow navigation rules, and you won’t have a fixed address for services like GP registration or voting (though you can register as having “no fixed abode”).
3. Leisure Moorings & “Composite” Rates
Some marinas have “leisure moorings” where people live semi-permanently. This is a grey area:
- Marinas and Business Rates: If the marina operator retains the right to move your boat at any time, they may be the ones paying Business Rates rather than you paying Council Tax.
- Composite Hereditaments: In some cases, a marina pays a “composite” rate to the council and then passes this cost on to you through your mooring fees. In this scenario, you don’t get an individual Council Tax bill, but you are still technically contributing to it.
