A recent case presented before the First Tier Tribunal holds relevance for businesses operating campsites and farmers diversifying into “glamping” with camping pods on their land. According to capital allowances legislation, caravans predominantly used for holiday lettings and movable buildings intended for qualifying activities, such as portacabins on building sites, qualify as plant and machinery.

In this recent case, the Tribunal ruled that certain camping pods, not connected to mains drainage, qualified as plant because they were potentially movable buildings. This signifies that limited companies incurring expenses on new pods can benefit from 100% Annual Investment Allowance (AIA) and “full expensing” relief, while unincorporated businesses can avail themselves of 100% AIA.

Although HMRC may contest the Tribunal’s decision, it’s advisable to pursue a claim for tax relief in the interim. We can assess your circumstances to determine if they align with this recent case.