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Where Taxpayers and Advisers Meet

Static caravan tax 2

Simmo22
Posts:2
Joined:Mon Nov 21, 2016 11:23 am
Static caravan tax 2

Postby Simmo22 » Mon Nov 21, 2016 11:34 am

I've read several related questions and answers on this subject and read links to various hmrc pages but I am unable to find the answer.

I am considering purchasing a new static caravan and renting it out for part of the year. It will not meet the requirements for a FHL due to the number of days it will be made available for hire.

How do I account for the income and expenses including any capital allowance and finance costs?

Regards

Paul

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Static caravan tax 2

Postby bd6759 » Mon Nov 21, 2016 11:25 pm

On the property pages of your tax return

Simmo22
Posts:2
Joined:Mon Nov 21, 2016 11:23 am

Re: Static caravan tax 2

Postby Simmo22 » Sun Dec 04, 2016 9:41 pm

Wow!

I didn't expect such a detailed response. Thanks for your help but you really shouldn't have gone to so much trouble.

Crossleys
Posts:40
Joined:Tue Sep 28, 2010 12:23 am
Location:Hindhead, Surrey
Contact:

Re: Static caravan tax 2

Postby Crossleys » Wed Dec 21, 2016 10:30 pm

Hi, this will be treated as a rental business and expenses can be claimed using the same principles as apply to other businesses, ie business expenses are claimable except that:-

- no deduction is allowed for expenses not incurred wholly and exclusively for the purposes of the trade
- no deduction for business entertaining
- no deduction is allowed for items of a capital nature

With regard to the last point, it is possible to claim Capital Allowances for some capital items, eg if you need a computer in order to run the business you can claim a Capital Allowance for the cost of the computer. Unfortunately you will not be able to claim a Capital Allowance for the cost of the caravan. You can claim the cost of repairing and redecorating it, but not the capital cost. You can however claim the finance costs. Don't hesitate to ask about the above or other specific costs.

Lastly if you are not already completing Tax Returns you will need to register for Self Assessment on https://www.gov.uk/log-in-file-self-ass ... tax-return
PNP Lewin FCCA
Crossleys Chartered Certified Accountants
plewin@crossleysuk.com


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