Incorporation Relief and Caravan Sites

Incorporation Relief and Caravan Sites

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I have a client who owns and operates a caravan site. The caravan site's income come purely from site fees and electricity recharges. There is no other income such as a shop or caravan sales etc.

We now want to transfer the caravan site into a limited company.

I've looked at Gift relief and that refers to assets used in a trade therefore I don't think we oculd get Gift Relief (of we were gifting the site) but s162 relates to "business" assets.

Can we claim s162 Incorporation relief?

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By cyrynpen
27th Mar 2013 17:23

Anyone any thoughts? :)

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By mikeyban
27th Mar 2013 21:40

I presume you are referring to goodwill.

Does the client declare income as self employment?

Does the business take up slot of his time, bookings etc?

Are there toilet blocks that need cleaning and repairing?

If all yes then declare gain and claim
relief but full up white space on return with suitable explanation so a successful challenge will result in a mitigation of penalties.

I would however suggest that you keep the site out if the company and follow the sale to the company of goodwill method of incorporation.

Hope this helps!

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