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Caravan let

Does anyone know what the tax treatment is in respect of revenue and expenditure relating to a caravan let ? Are the rules the same as for the letting of a holiday home ?
What if the caravan is moved to different sites ?

Would greatly appreciate guidance from anyone on this.
Paul Dorrington

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See issue 15 Newthwire
See taxzone - Newthwire issue 15 for further details.

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Deductable expenses ??
Thanks John. So presumably that means that subject to satisfying the Revenue's criteria, any profit is treated as trading income as oppose to rental income and conversely any losses are treated as trading losses which can be offset against other income.

What type of expenditure incurred in relation to the caravan let would be deductable against the income received ??

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Caravan Let
Basically, yes! Include it in your Income from Property pages. Moving the siting of the caravan makes no difference to the liability to tax on the profits.

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Caravan Services
Paul,
All the usual costs, site rental - if you are paying it to a 3rd party, Council Tax/Water Rates, Repairs & Renewals including tie-ing down (if on a windswept hill!), cleaning and laundry (if supplied) can be claimed.
The assumption in all of this is that the letting amounts to a (seasonal)trade.

Of course, in the old days, mortgage interest could have been claimed when a new van was purchased as a home.

Capital Allowances/Balancing Allowances/charges can be brought in if necessary on any change of unit.

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Various issues
Income from the letting of a single caravan is normally assessed under Schedule A. There are some instances where Schedule D, Case I or even Case VI applies. Inland Revenue Press Release of 17 May 1984 and Revenue Pamphlet IR I, B29 may be helpful to you.

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