Home
Business funding: Finance options and advice for business investment or debt

Case Study: Restructuring of a caravan park business

We have advised a number of parks on how they can benefit from a corporate relief that allows groups of companies, if they meet certain conditions, to dispose of one park through a limited company, and not pay Capital Gain Tax on the corporate disposal.

This meant we needed to review the current structure of the business and bring the various parks together into a group of companies.  This has many advantages, especially around moving assets around the group of companies, as well as allowing losses to moved between companies rather than simply being carried forward.  This restructure mean that those parks held in the separate limited companies could, if they had been subsidiary companies of the group for a period of time, to be disposed of free of CGT by the holding company.  If say the park, held through a company, was disposed of for £1 million, meet the various conditions required to obtain the CGT and SDLT reliefs then the disposal would be tax free rather than suffering tax at #190,000, allowing further investment by the group of companies into new parks or attractions.

We were also able to review the remuneration paid to the directors and senior staff and make suggestions and changes that reduced the tax burden of the overall business, whilst link those senior staff members to key performance indicators that would drive further value into the business.

Learn more

Visit our Caravan and Lodges page to learn more about the services we provide.

Enquiry Form

All content © 2020 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.

Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is James Watson House, Montgomery Way, Rosehill, Carlisle, CA1 2UU where a list of members is kept. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. Unless otherwise indicated, either expressly or by the context, we use the word “partner” to describe a member of Armstrong Watson LLP or an employee of Armstrong Watson LLP in their capacity as such.

Armstrong Watson Audit Limited is registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales, number 8800970. The registered office is James Watson House, Montgomery Way, Rosehill, Carlisle, CA1 2UU. Armstrong Watson Audit is a trading style of Armstrong Watson Audit Limited.

Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales, number 7208672. The registered office is James Watson House, Montgomery Way, Rosehill, Carlisle, CA1 2UU. Armstrong Watson Financial Planning & Wealth Management is a trading style of Armstrong Watson Financial Planning Limited. Armstrong Watson Trustees Limited is a limited company registered in England and Wales, number 84495656. The registered office is James Watson House, Montgomery Way, Rosehill, Carlisle, CA1 2UU.

MyRetirement is a trading style of Armstrong Watson Financial Planning Limited.

Armstrong Watson is a trading style of Armstrong Watson LLP, Armstrong Watson Audit Limited and Armstrong Watson Financial Planning Limited.