Having worked with clients within the seasonal caravan and park homes sector in the East Midlands for many years, we understand the challenges specific to the leisure industry.
Our expertise enables us to offer practical, realistic advice and share areas of best practice to maximise success for our clients, particularly on the current issues caravan and park owners are facing.
As competition continues to rise within the leisure industry as a result of mergers between the major caravan and park brands, the threat to the revenues of smaller caravan park owners is ever present. There is an increasing price differential between the top parks and those in less desirable locations affecting sales for smaller parks at the lower end of the market, as well as a higher demand for inward investment into improving standards increasing operating costs.
It is important that caravan and park owners assess the trading status of their company for inheritance tax (IHT) purposes. Many make the assumption that their business will be fully covered by business property relief however this is not always the case and careful planning is needed. D&T’s tax specialists can discuss the status of your business and advise on the best way to avoid IHT.
Caravan and park owners are faced with a constantly fluctuating consumer market, with the continual growth of low-cost air travel and consumer demand for high value package holidays. Last year, it was reported that over half of British holidaymakers took at least one trip abroad, posing an ever-growing threat to independent UK leisure companies. Despite the growth of ‘staycations’ in recent years, holidaymakers are faced with the uncertain UK climate, keeping overseas travel a popular choice for many.
The new tax structure imposed on landlords for buy-to-let properties makes holiday-home ownership more desirable due to tax breaks that they receive. Additional tax-saving benefits are available - for example, capital allowances can be offset against the general income of a park owner.
Due to the high level of maintenance required on holiday homes, the running of a seasonal caravan or park home can be more expensive for landlords to manage than a standard buy-to-let residential home.
Here to help
As proud members of the British Holiday & Homes Park Association (BH&HPA), we offer a full range of business services to the caravan and park homes sector. Services include accounts preparation, statutory audit and review of operations efficiency, cash flow management, tax planning, acquisitions and disposals, investments and personal services.
We are also listed on the Expert Panel of Omar Park Development Services to assist existing and new holiday park operators on the financial and tax aspects of park development and operations.
For more information, please email email@example.com or download our Caravan & Park Homes brochure.