Treatment of campervan costs

Is the purchase, conversion and rental of a campervan treated in the same way as a rental property?

Didn't find your answer?

I have a client that had purchased a van and is converting it into a campervan for rental purposes but it may also be used for personal use. Can anyone tell me if this is treated in the same way as the purchase and rental of a rental property? Many thanks.

 

Replies (6)

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paddle steamer
By DJKL
17th Nov 2017 13:44

It is surely a trade. What is the client?

As an aside insurance may be interesting, used to act for a fairly substantial private self drive company in the 1980s and back then insurance was pretty tasty re a self drive fleet, to say the least.

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Replying to DJKL:
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By hsr
17th Nov 2017 14:23

Thank you - they are just a self-employed individual looking to do this as an additional business. It will predominantly be for rental but may occasionally be used for private use.

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Replying to hsr:
paddle steamer
By DJKL
17th Nov 2017 14:33

So in effect a car hire business.

The catch with older vehicles (presume it is so given conversion) will no doubt be when the customer breaks down in John O'Groats and the issue of an alternative vehicle/recovery raises its head.

I had an incident is Sweden a couple of years ago where a virtually brand new hire car packed up, luckily only 15 miles from pickup, Hertz only had one alternative in stock, a very large double cab pickup which I was not altogether pleased about given its fuel consumption compared with the Golf I had ordered; presume your client has really thought the business through.

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By mrme89
17th Nov 2017 13:45

It is treated in the same way as a house in that someone buys an asset and rents it out.

But perhaps your question is about how they are treated for accounts and tax purposes? If that is the case, it's impossible to say as we are currently sat in an information vacuum.

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Replying to mrme89:
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By hsr
17th Nov 2017 14:24

Thank you - yes sorry I was meaning for accounts and tax purposes..

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Melchett
By thestudyman
18th Nov 2017 01:20

Delete wrong thread

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