Caravan parks

We have been asked to advise on the potential capital gains tax liabilities that would arise in respect of the disposal of two caravan parks (A and B) following the break down of a marriage.

Site A was purchased jointly in 2004 by the husband and wife concerned and the business has been operated as a partnership throughout their ownership.

Site B was acquired by the husband some time before the marriage in 1987 but since then the business has operated as an equal partnership. The property has remained in the sole ownership of the husband.

In the case of site A there are 125 holiday static caravan pitches and ten residential park home pitches.

The business also typically generates income from caravan sales to private owners and commission taken from private ‘owner to owner’ sales.

On occasions chalets are purchased back from owners and resold and...