Due to the high level of maintenance required on holiday homes, the running of a seasonal caravan or park home can be more expensive for landlords to manage than a standard buy-to-let residential home.
The new tax structure imposed on landlords for buy-to-let properties makes holiday-home ownership more desirable due to tax breaks that they receive. Additional tax-saving benefits are available - for example, capital allowances can be offset against general income of a park owner.
It is important that caravan and park owners assess the trading status of their company for inheritance tax (IHT) purposes. Many make the assumption that their business will be fully covered by business property relief however this is not always the case and careful planning is needed. Our tax specialists can discuss the status of your business and advise on the best way to avoid IHT.
As proud members of the British Holiday & Homes Park Association (BH&HPA), we offer a full range of business services to the caravan and park homes sector. Services include:
Contact us today with any questions about your caravan or park home,
and our specialist team will be on hand to help.
Giving his Summer Statement on 8 July, the chancellor announced a headline measure of VAT on food, accommodation and attractions being cut to just 5%.
What a difference! Just weeks ago, our coastal towns were silenced under the UK-wide lockdown and now life is coming back to some of the nation’s favourite seaside resorts, albeit with a few caveats.
To support businesses most affected by the COVID-19 crisis and subsequent UK lockdown, the government has announced a temporary adjustment to VAT rates for the hospitality, hotel and holiday accommodation sector from 15 July 2020 to 12 January 2021.
Amusement arcades and other businesses could be set for a tax rebate worth billions of pounds after a legal victory for the sector.
Coronavirus could not have come at a more unfortunate time for businesses which depend on tourism.
The nationwide lockdown which began last weekend came just as businesses in the county’s leisure and tourism sector were expecting to increase trade following winter.