SPEAKER:Rob Ellis Partner specialising in advice to the agricultural community

www.welchandellis.com

Glamping; Glamour Camping

Also known as boutique/luxury/posh camping, today's glamping normally features all the mod cons.

Think outside the box• 'It’s easy to just buy a yurt, bell tent or

shepherd’s hut. But the experience generally asks for a bit more than that, so we very much promote what’s outside as much as what’s inside - a great location, lounging space outside and campfire are considered basics. Wood-fired hot-tubs, hammocks in trees and outdoor pizza ovens are the next step along”. Tom Dixon, Sawday’s Canopy & Stars

How to get finance

- Personal investors, crowd sourcing, grants, banks etc

- They will all be looking for an improving or stationary forecast.

Cost of buying accommodation

•Shepard’s huts sleeping two circa £15-27,000 but generate £8,000 t/o p.a•Tipi/Yurt for four circa £10,000-generating t/o £10,000 p.a•American Airstream for 4 circa £17,000 generating £15,000 t/o p.a•Safari tent £25,000-30,000-t/o £15-18,000.

• 2-3 years to become established as a site

• Expect with good marketing 15-20 weeks in year 1 running up to 35-40 weeks in year 3.

• Market may be saturated certainly is in the West Country so try to be UNIQUE.

Financing - Business plan•Year 1-3•History and Background•Mission Statement and Objectives

(how glamping should be seen, showing both owners and business objectives, photos etc)

Financing – Business Plan•Services offered•Sales Forecast•Cash flow forecast - CASH IS KING•Make sure capital expenditure, finance costs are included. Show effect on any of your assumptions-unexpected eventualities•Summary

Most financiers will also be looking for-•Management Accounts/VAT/Quarterly. •Review to discuss results and how you benchmark against others.Of course you could avoid all the aboveStart small – but I would still recommend a quarterly review

Business Plan not just for glamping.Are you farming and making losses? You could be losing other tax reliefs as well. Would argue moveable basic glamping/camping investment. Insignificant ok?

There is no black and white in tax, just grey – so take advice!

• Offer a premium service• Ammenities hotel would provide• Fresh bed linens, en-suite washrooms,

food/room/ironing service etc• A mini bar/restaurant• Breakfast voucher with a local

supplier/bakery/your own farm produce

Furnished Holiday let relief:Available to let for at least 210 daysActually occupied for at least 105 days

Why?

Great Tax Breaks – Thats why!

ODD ONE OUT ROUND

You could lose the following tax reliefs;

Inheritance tax exemption (BPR).

Business Property reliefBusiness Property relief HMRC reluctance – HMRC reluctance –

Pawson casePawson case Talk of APR/BPR being Talk of APR/BPR being

changedchanged

A. Gift the property

B. Other tax planning

You could lose the following tax reliefs;

•Inheritance tax exemption(BPR/APR).•Capital Gains tax (Entrepreneur’s Relief, Roll-over Relief/Holdover relief)

• Entrepreneurs ReliefEntrepreneurs Relief• Bear in mind HMRC taking a Bear in mind HMRC taking a

harder line on material harder line on material disposaldisposal

Gains on sale/gift of glamping can be rolled over

Trading gains can be rolled/held over

You could lose the following tax reliefs;

•Inheritance tax exemption(BPR/APR).•Capital Gains tax (Entrepreneur’s Relief, Roll-over Relief/Holdover relief)•Loan Interest Relief

Interest relief still at higher rate

Unless FHL status lost

Be careful! What does your current advisor offer?Do you talk about :•Separate, one set of accounts or composite accounts•How and can management be hived off? Agreement tax treatment? e.g you don’t have the set up costs

Free initial review and marketingFree initial review and marketingreview if you sign upreview if you sign up

Wrong Approach Remember think outside the box

Rob Ellis

Ledbury Pentre IssaWillow Street LlanfechainOswestry LlansantffraidShropshire PowysSY11 1AJ SY22 6XQ

Telephone: 01691 657401Email: rob@welchandellis.com