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General Business Discussion Capital allowances on holiday let caravans

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Capital allowances on holiday let caravans

Posted By Jane Gilroy 7 months ago

Hi All,

I'm hoping someone can help out on this as I am finding conflicting advice and HMRC guidance is a clear as mud.

Can I claim capital allowances for a residential caravan used mainly for holiday letting?

Thanks.

Natalie Bewick- Community Manager 7 months ago

Hi Jane

Welcome to the forum, great question. I am sure one of our community members will answer this for you.

Thanks

Natalie
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Jon Kirkup 7 months ago

Hi, I'm not a tax expert but my understanding is that caravans on residential sites cannot claim capital allowances:

https://www.gov.uk/hmrc-internal-manuals/capital-allowances-manual/ca22100#:~:text=Accept%20that%20a%20caravan%2C%20which,not%20qualify%20for%20capital%20allowances.

However, under certain criteria there is an exception for Furnished Holiday Lettings (FHL). FHL properties can be eligible for certain tax advantages including potential to claim capital allowances on qualifying assets within the property. This may include fixtures, fittings and integrated features of the property.

These items and rules change over time some it's potentially worth seeking advise from a qualified tax advisor. Alternatively here is the page from HMRC:

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim4140

Hope that's some help.
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