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Holiday Home & Parks

More pain on VAT - Withdrawal of Extra Statutory Concessions (ESCs)

21 Dec 2010

On top of the increase in the standard rate VAT to 20% on 4thJanuary, there are plans to withdraw longstanding concessions, the effect of which will either push up the prices if passed on to customers or, if absorbed, reduce the profit of the Park Owner.

More pain on VAT - Withdrawal of Extra Statutory Concessions (ESCs)

21 Dec 2010

On top of the increase in the standard rate VAT to 20% on 4thJanuary, there are plans to withdraw longstanding concessions, the effect of which will either push up the prices if passed on to customers or, if absorbed, reduce the profit of the Park Owner.

VAT rate increase 4th January 2011

01 Nov 2010

Talking to BH&HPA members at a recent branch meeting there is still uncertainty amongst Park Owners regarding the VAT rate to be applied to next season’s pitch fees. In particular there is a concern that if VAT invoices for pitch fees are raised earlier than normal and before the 4thJanuary 2011 they will fall foul of the anti-forestalling regulations, which are designed to stop traders creating artificial situations to avoid paying VAT at the higher rate.

The ‘staycation’ effect and market trends

09 Aug 2010

Visiting parks and talking to park owners there is a mixed picture on this season trading in caravan holiday homes. At the same time Visit England reported an 18% increase in holiday trips in 2009 and the industry feeling confident about this season.

Improve your cash flow and admin efficiency

19 Jul 2010

There is a trend towards asking for payment up front.

In the parks industry this practice is already well established as pitch fees are due in advance. However, there is still a wide variance in practice on the due date – this can range between September and March. It will pay you to review your terms and systems for collection of 2011 pitch fees now.

Consider

House Market and the Parks Sector

28 Jun 2010

There has always been a close relationship between the parks sector and the housing market. One of the reasons for this is that both markets have experienced a shortage of supply.

In the housing market at the peak of the boom new builds have accounted less than 1% of the existing stock. In the parks sector planning restrictions have held back supply of new pitches.

The result is that lack of supply in housing supports the prices despite the lack of credit. And the restrictions on planning, partly explain why the price of parks is holding up.

Bank of England gets more power

17 Jun 2010

The announcement by George Osborne that the Bank of England will be responsible for regulating the UK financial sector is unlikely to ease credit conditions. Banks are already much more cautious in lending and this seems likely to continue in the near future.

Len Bell, Head of the Northern Leisure Team at Montpelier Chartered Accountants, a specialist adviser to the holiday and caravan parks sector lbell@montpeliergroup.com.

Green light from Coalition?

01 Jun 2010

The coalition Government seems determined to stick to its green agenda despite the need for cuts in spending.

However, investing in green technology is often a difficult decision for SMEs – especially in hard economic times.

This is particularly true for park operators because it can be difficult to evaluate costs and benefits.

Reprieve on the Cards for Furnished Holiday Lets?

28 May 2010

After the proposals to abolish tax breaks on furnished holiday lettings were shelved before the Election, there is growing optimism that the Coalition Government won’t tinker – at least not this year.

The Coalition’s Programme for Government includes the following paragraph on Furnished Holiday Lettings:
“We will take measures to fulfil our EU treaty obligations in regard to the taxation of holiday lettings that do not penalise UK-based businesses.”
Park owners should have more clarity when the Budget is revealed on June 22.

Braced for CGT Hike

16 May 2010

The fledgling Conservative Liberal Democrat coalition will publish their first Budget on June 22.

Their income tax changes will be targeted at the lower and middle income earners. These will be paid for in part by increases in Capital Gains Tax (CGT) for non-business assets.

Speculation is rife that CGT on gains above the upper limit for Entrepreneurs Relief and for non-business assets could jump to 40% or 50% for higher rate tax payers.