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Caravan recognition

28 November 2007
Issue: 4136 / Categories: Forum & Feedback
Are mobile homes eligible for capital allowances?

My client a fruit grower has in the past accommodated his workers in caravans on his land. HMRC's Capital Allowances Manual at CA22100 advises that plant or machinery allowances on such caravans provided by farmers should be allowed. As would appear to be the trend with farmers my client is considering purchasing mobile accommodation units to house the workers instead of caravans of the type you would see being towed on the road.

I am concerned that HMRC may argue that these units do not qualify as caravans and therefore deny capital allowances on the expenditure. The definition of a caravan for the purpose of the Caravans Sites and Control of Development Act 1960 is used in the tax legislation in certain places. The word 'caravan' is defined for this purpose to mean any structure designed or adapted for human habitation which is capable of being...

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