caravan on holiday park

advocate70

Can someone help me on this, HMRC say that if you buy a caravan to hire out then its treated as premises and you cant claim capital allowances. How can this be right or fair as its a wasting asset same as car or van it goes down in value. I can understand premises such as houses not qualifying as they normally go up in value.
A business like this will make an annual profit which is taxed but can never bring in more actual cash than goes out because you are not allowed allowances like A.i.A to offset initial capital outlay.
There seem to be many views on this and it seems different inspectors will take different view
Help !

Savvy_Sue

It makes sense to me if it's a static 'van that it should be treated as premises.

Is it a static 'van?

jimmo

advocate70 wrote: »

HMRC say that if you buy a caravan to hire out then its treated as premises and you cant claim capital allowances.

Strange, did you speak to HMRC yourself and did you tell them its on a holiday park?
http://www.hmrc.gov.uk/manuals/camanual/CA22100.htm

advocate70

I did speak to revenue direct , she checked my query with an inspector who insists its premises not plant stating this was in a few cases recently. Im not sure what to put on tax return now. Doesnt seem fair that no allowances. I had read the note ca22100 which is badly written to start with and confusing.
The caravan is situated on holiday park , meets all letting qualifyjng rules, it is staying there and not being moved as pay site fees etc

purdyoaten

Can't agree at all with the inspector - very strange advice as jimmo, a former inspector I believe, says. I would check again and refer them to jimmo's link - their own manual.

Don't get too fixed on whether or not tax legislation is 'fair' - really plays no part.

advocate70

Thanks for the advice guys, probably best to write and seek clarification