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Where Taxpayers and Advisers Meet

Caravan and Capital Allowances

Yiannis17
Posts:114
Joined:Wed Aug 06, 2008 3:43 pm
Caravan and Capital Allowances

Postby Yiannis17 » Fri Jun 24, 2022 1:37 pm

Hi

Would a caravan that has been purchased by a self employed individual to act as his office at the back of his garden, who works from home ( does not live in the caravan but lives in the main home) qualify for 100% allowances?

Thank you

bd6759
Posts:3785
Joined:Sat Feb 01, 2014 3:26 pm

Re: Caravan and Capital Allowances

Postby bd6759 » Fri Jun 24, 2022 10:51 pm

A caravan that is used as an office does not qualify as plant or machinery, so CAs are not applicable.

It won’t qualify for the structure and building allowance because it is in your garden.

robbob
Posts:3221
Joined:Wed Aug 06, 2008 4:01 pm

Re: Caravan and Capital Allowances

Postby robbob » Sun Jun 26, 2022 10:25 am

Here is the guidance that backs up what bd6759 says

https://www.taxationweb.co.uk/forum/posting.php?f=2&mode=reply&t=59075&sid=4846ba0dce401fd21b34a33925d46eeb

Note is some respects this guidance may "seem" unfair as you could have high business use and not be able to make no claim where someone who had similar caravan and moved it around "a bit" each year (eg to site) could claim. I guess ultimately hmrc take the viewpoint that if it doesnt move its more akin to a building which you wouldnt be able to claim for - in that regard their reasoning unfortunately is kinda logical.

you would alowed claim under following circumstances
A caravan is plant if it does not occupy a fixed site and is regularly moved as part of normal trade usage, even if it is only moved from its summer site to winter quarters.

bd6759
Posts:3785
Joined:Sat Feb 01, 2014 3:26 pm

Re: Caravan and Capital Allowances

Postby bd6759 » Sun Jun 26, 2022 5:32 pm

I doubt putting it away for the winter would change the nature of the asset.

Yarmouth v France and Benson v Yard Arm Club (the former being over 130 ago) still hold true.

Yiannis17
Posts:114
Joined:Wed Aug 06, 2008 3:43 pm

Re: Caravan and Capital Allowances

Postby Yiannis17 » Fri Jul 01, 2022 10:28 am

Thank you all very much. Very helpful


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