Private residence relief: the entity of the dwelling house: caravans
A mobile caravan is a tangible moveable asset, a chattel. If it is a wasting asset, see CG76700+, and no capital allowances were available on its cost, no chargeable gain can arise on its disposal. Any gain is exempted by TCGA92/S45 (1), see CG12602.
Where a caravan has become so affixed to the land as to become part of it, it will have ceased to be a chattel and so any gain will not be exempt. However in these circumstances it may be that the caravan would be regarded as a dwelling house and as such private residence relief may be available.
A caravan which is connected with water, electricity, telephone and other essential services and has become permanently located on a site, even though it may still be technically mobile, may be regarded as a dwelling house. However this is a question of fact. Assistance can be obtained in relation to this issue in the contrasting decisions of Makins v Elson (51TC437) and Moore v Thompson (61TC15).