Restructuring Caravan Parks in a tax efficient way
We've been recently asked to help our clients restructure their caravan park businesses to navigate the complex world of tax relief and make sure that they are running as efficiently as possible.
Picture this: selling one of your caravan parks through a limited company without spending a penny in capital gains tax. Yes, you read that right: if you meet certain conditions, it's possible to dispose of one park through a limited company and not pay capital gains tax on the corporate disposal.
The Benefits
To benefit from this, we've been reviewing our clients current business structures to bring their various caravan parks together into a group of companies. This means that both assets and losses can be moved around the group of companies rather than carrying them forwards.
By restructuring in this way, those caravan parks held in separate limited companies could (if they had been subsidiary companies of the group for a period of time), be disposed of free of capital gains tax by the holding company. In real terms, this means that if the park held through a company was disposed of for £1 million and meets the conditions for the CGT reliefs then the disposal would be tax free, rather than suffering the tax at £190,000.
Savings like these have meant that our clients have been able to invest into their group company further, expand their parks and purchase more parks.
How we help
Get in touch with specialist caravan park accountants AW Accountants today for advice on how to best structure your caravan and lodge parks business. As associate members of the BH&HPA, AW Accountants have vast experience in working alongside your current accountants for park industry specific matters like VAT, tax and company structures. We work nationwide utilising cloud based technology or we will visit your premises if that is best for you.
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