Statically mobile

23 February 2006 / Dave Williams

Issue: 4046 / Categories: Comment & Analysis , Companies

When is a mobile home not a mobile home, asks DAVE WILLIAMS in his exploration of holiday parks and the hotel buildings allowance.

THE HOTEL BUILDINGS allowance can now be applied to benefit some holiday parks and caravan parks in the UK. Francis Clark having been alerted to the possibility of a re-interpretation of the rules by an HMRC seminar aimed at the tourism industry successfully negotiated a corporation tax refund of £328 000 including interest for one of the biggest holiday park operators in the West Country. The figure relates to six years of profits plus interest.
The corporation tax refund came about as the result of tax legislation which allows hotels to claim back building allowances against their corporation tax. The HMRC speaker suggested that this could be expanded to include other leisure sector businesses provided they met with certain criteria.

Hotel buildings allowance

The hotel buildings allowance was introduced in the 1978 Budget and stated that for expenditure incurred on hotel construction after 11 April...

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