The tax position of caravan parks is extremely complex notably for inheritance tax, capital gains tax, VAT and capital allowances. We provide our clients with the support and services to meet their objectives, in particular we are able to offer expert knowledge to caravan park operators in the following areas;
- Inheritance tax and capital gains tax planning.
- Tax treatment and tax efficient planning of pitch development.
- Capital allowance allocations on park purchases or park development.
- VAT calculations on caravan sales and pitch fees.
- Software set-up, support and integration of accounts packages with industry specific systems particularly for multi park or multi enterprise operations.
- A bespoke audit system for the industry helping to provide informative feedback from our work.
- Bookkeeping and management account preparation.
As a firm we have developed links with other professionals who also have extensive knowledge in the caravan park sector.
Areas where we have had particular success include;
- The restructure of caravan park operations to enhance the possibility of exemption from inheritance tax.
- The use of transaction rulings from HM Revenue & Customs to confirm that particular parks are considered ‘trading’ businesses for the purpose of capital gains tax, if a ruling is successful it opens up further tax planning opportunities.
In recent years we have assisted in the sales and purchases of sites with values up to £9,000,000. We have also been involved in the reclassification of assets which have generated tax savings of up to £500,000.