Glamping and Diversification presentation
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Transcript of Glamping and Diversification presentation
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SPEAKER:Rob Ellis Partner specialising in advice to the agricultural community
www.welchandellis.com
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Glamping; Glamour Camping
Also known as boutique/luxury/posh camping, today's glamping normally features all the mod cons.
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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
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How to get finance
- Personal investors, crowd sourcing, grants, banks etc
- They will all be looking for an improving or stationary forecast.
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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.
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• 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.
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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)
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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
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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
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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!
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• 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
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Furnished Holiday let relief:Available to let for at least 210 daysActually occupied for at least 105 days
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Why?
Great Tax Breaks – Thats why!
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ODD ONE OUT ROUND
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You could lose the following tax reliefs;
Inheritance tax exemption (BPR).
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Business Property reliefBusiness Property relief HMRC reluctance – HMRC reluctance –
Pawson casePawson case Talk of APR/BPR being Talk of APR/BPR being
changedchanged
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A. Gift the property
B. Other tax planning
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You could lose the following tax reliefs;
•Inheritance tax exemption(BPR/APR).•Capital Gains tax (Entrepreneur’s Relief, Roll-over Relief/Holdover relief)
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• Entrepreneurs ReliefEntrepreneurs Relief• Bear in mind HMRC taking a Bear in mind HMRC taking a
harder line on material harder line on material disposaldisposal
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Gains on sale/gift of glamping can be rolled over
Trading gains can be rolled/held over
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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
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Interest relief still at higher rate
Unless FHL status lost
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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
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Free initial review and marketingFree initial review and marketingreview if you sign upreview if you sign up
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Wrong Approach Remember think outside the box
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Rob Ellis
Ledbury Pentre IssaWillow Street LlanfechainOswestry LlansantffraidShropshire PowysSY11 1AJ SY22 6XQ
Telephone: 01691 657401Email: [email protected]