Caravan purchase a business cost?

Sole trader purchased caravan to let - can the cost be classed as a business expense if cash accpunt

Didn't find your answer?

I have purchased a caravan to let on an established caravan park and as a sole trader who prepares accounts on a cash basis can I treat the purchase of the caravan as a business cost in year 1?

Replies (4)

Please login or register to join the discussion.

avatar
By David Ex
03rd May 2024 14:37

If you don’t want to pay an accountant, you’ll have to do your own research.

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim70000

Thanks (0)
DougScott
By Dougscott
03rd May 2024 14:56

The sub-letting of a static caravan in a holiday park is likely to be treated as PROPERTY INCOME. This is entirely different to TRADING INCOME. Therefore you cannot combine the caravan income with any pre-existing trading income but need to prepare seperate accounts. (Another alternative but for this tax year only is that it could qualify as a FURNISHED HOLIDAY LETTING but that regime is abolished from 6/4/25).

Whether or not you can claim any, part or all of the cost of the caravan will depend on the nature of your agreement with the caravan park. If you are renting the caravan then chances are you can claim the expense as incurred. If you are buying the caravan then, unless there are special rules for caravans which there may be as I have not dealt with this scenario before, then the purchase is likely to be a capital cost and therefore not allowable.

BUT you would be strongly advised to hire an accountant who has experience of this area.

Thanks (1)
the sea otter
By memyself-eye
03rd May 2024 18:36

Where is it and how much to let for a week's holiday?

Thanks (0)
Replying to memyself-eye:
Avatar
By I'msorryIhaven'taclue
03rd May 2024 21:27

Double the price of a canal boat!

I took my daughter to watch a boy-band - umm a client company boy-band courtesy of freebie tickets and free shots at half-time - and because we've lived here, there, and everywhere she got chattering to some barflies: "Dad, dad... we're like bl**dy gypsies aren't we!" at which they informed us stonily that they resided in the caravan park up the road.

Thanks (0)