Melvin,
Using pyrotechnics by individuals is pretty much a no no in the UK and has been for many years. Certainly you would not be able to operate your boat on any water with public access although if you have your own private lake this would presumably be OK but it would be entirely at your own risk as it is unlikely you could get insurance against any claims for injury that may be made against you.
There were some experiments back in the 1970s but pyrotechnics can be unpredictable in their effects and the modellers considered it to be too risky.
The main exponent of pyrotechnic shows in the UK is the Portsmouth Model Boat Display Team who put on demonstrations which are subject to stringent public safety requirements. You could try contacting them for further information, their website is **LINK**
You may have heard that things are rather less safety minded in the USA where there appears to be a thriving practice of warships armed with BB guns attempting to sink each other. This entails, for example, Hood and Bismarck lying alongside each other exchanging broadsides in the manner of Nelsonic wooden walls which is a bit unrealistic to say the least.
If you simply want to simulate gunfire then take a look at the HMS Iron Duke topic on the Model Boat Mayhem website, particularly the most recent pages which show how a mister has been successfully used to give quite realistic effects: http://www.modelboatmayhem.co.uk/forum/index.php/topic,43803.0.html
Colin