Caravan finance.

Morrigan_2020

Why did you ask if you didn’t want to know the correct answer?

JamoLew

Post #2 and imo #3 (mine) answered sufficiently I though

Jeremy535897

If the increase in the caravan's value is more than the finance costs, what loss are you expecting the finance company to contribute to?

JamoLew

Jeremy535897 said:

If the increase in the caravan's value is more than the finance costs, what loss are you expecting the finance company to contribute to?

good point - maybe the finance company will ask for more money now their assest is more valuable

Grumpy_chap

HELP!
Can someone explain this thread to me please?  I am really struggling to understand it, so much so it hurts   
As I understand it:

• The OP has purchased a caravan
• The caravan is on finance

krystal_williams88 said:

We bought a touring caravan on finance Jan 2020. 

• The OP has not used the caravan much
• There is no direct financial loss as a result

krystal_williams88 said:

We haven’t been able to use the van as much as we would have. 
The site have been fab with refunding fees paid

• Irrespective, the OP wants some financial compensation or bail out from someone:

krystal_williams88 said:

where I would stand with trying to claim anything back from the caravan finance company. 
Would the finance companies take this into consideration for any future refunds etc? 

• The value of the OP's caravan has increased:

krystal_williams88 said:

They have rocketed in price. Which is good for us

It would seem to me that the best thing for the OP to do is:

• Sell the caravan
• Repay the finance
• Declare the profit and settle the CGT liability
• Retain the balance of the profit after CGT and consider that as the compensation

OR, Where did I misunderstand the OP please?

Jeremy535897

It would seem to me that the best thing for the OP to do is:

• Sell the caravan

• Repay the finance

• Declare the profit and settle the CGT liability

• Retain the balance of the profit after CGT and consider that as the compensation

No CGT on wasting assets unless you claimed capital allowances (obviously not in this case).

Grumpy_chap

Jeremy535897 said:

No CGT on wasting assets unless you claimed capital allowances (obviously not in this case).

So the OP gets to retain all the profits from the caravan rocketing in price.  Even better for the OP
Is it still a wasting asset if it appreciates in value?

Jeremy535897

Grumpy_chap said:

Jeremy535897 said:

No CGT on wasting assets unless you claimed capital allowances (obviously not in this case).

So the OP gets to retain all the profits from the caravan rocketing in price.  Even better for the OP
Is it still a wasting asset if it appreciates in value?

Getting a bit off topic here, but yes. A wasting asset is an asset with a predictable life of 50 years or less. For more information see https://www.gov.uk/government/publications/chattels-and-capital-gains-tax-hs293-self-assessment-helpsheet/chattels-and-capital-gains-tax-2020-hs293

The logic of the exemption is to exclude claims for losses, which will far outweigh any gains exempted.

mattyprice4004

krystal_williams88 said:

Nebulous2 said:

krystal_williams88 said:

Was wondering if someone could give me some help. We bought a touring caravan on finance Jan 2020. Then came March all lockdowns and covid starting coming. We haven’t been able to use the van as much as we would have. The site have been fab with refunding fees paid, but what I want to know is where I would stand with trying to claim anything back from the caravan finance company. Paying for something we can use with no fault of our own. We obviously still want to keep our van, but my question is more around paying for something we can use. Would the finance companies take this into consideration for any future refunds etc? Thanks 

Is your touring caravan on a seasonal pitch? 

Caravans were very popular last year because of the limited ability to go abroad. Sites were fully booked much more than usual when they were allowed to open. You’ll have saved a bit on depreciation. I bought a caravan October 19 and it’s worth 2-3,000 more than we paid for it. 

Yep same with ours! They have rocketed in price. Which is good for us

So you want to not pay for something that's rocketed in price?  Brilliant!
I had laser eye surgery and I've not been able to see as much of the outside world in the last year. Reckon I can ask them for a payment holiday too?  

strawb_shortcake

Wait until mortgage companies pick up this logic and put the repayments up as we've all spent more time in our homes 🤷‍♀️