How George Osborne's new Budget will affect VAT on caravans

The Chancellor has announced a raft of changes to the way VAT is charged
The Chancellor has announced a raft of changes to the way VAT is charged

Thursday, 22, Mar 2012 11:41

by Cameron Bird and Chris Jefferies

As part of his annual Budget, Chancellor George Osborne announced various change in the tax system yesterday (March 21st), and several previously un-taxed goods including static caravans will now be hit with the standard 20 per cent rate of VAT.

This change will take place on October 1st of this year, and could also have an effect on some larger touring caravans to go along with the previously zero-rated static caravans.

A caravan that is "designed and constructed for continuous year-round occupation" will still be zero-rated, and exempt from the VAT but all other static caravans will be taxed at the standard rate, according to HM Revenue and Customs (HMRC).

Touring caravans "which are under seven metres long are already standard-rated", HMRC adds, but some of the larger models could be subject to standard taxing as well, including the Bailey Retreat.

Simon Howard of Bailey Caravans told CaravanTimes: "It may well affect the Retreat as well as some of the larger touring caravans, but we are waiting for confirmation from HMRC on this."

With a few months remaining until the new system is put into place, caravanners looking to buy a static caravan or large tourer should look to complete their purchase before October, so as not to pay the new higher rate of VAT.

HMRC estimates the new tax will impact around 50,000 individuals purchasing static caravans each year, a number that will of course increase if larger touring caravans are included as well. In total the government expects to make £45 million over the next five years from this tax.

Comments - What do you think?
Related stories

Dometic Freshlight 1600 could solve compact caravan air-con quandary

The Dometic Freshlight 1600 air-con unit will give compact caravanners cool air and a rooflight

Following the success of its game-changing FreshLight 2200, Dometic has launched the FreshLight 1600 - bringing the air-conditioning rooflight to compact caravans and motorhomes

Astral Caravans: Long gone but still not forgotten

Astral caravans haven't been in production since 1980, but the dedicated Astral owners club carries on their legacy

Classic caravan manufacturer Astral may have gone bust in 1980, but the name lives on to this day, thanks to its dedicated owners club

Best Route to Cakes & Ale Holiday Park IP16 4TE

I noticed a discussion for directions to another caravan site in this afrea to Leiston. We are going to the Cakes ...

Why only facebook

Why can you only add comments on face book ? I am not nor will I ever join Facebook. Why can't you just log in to ...

Insurance for 1984 Lunar Meteorite

Hi am a complete newbie , just bought my very first little caravan and i'm trying to find insurance for him. I've ...

Motorhome Novice!

Hi Everyone I am collecting my first motorhome in June, its an Autoquest 120! Getting excited as well as apprehens...

Site directory.

Hi  Looking into getting a site directory booknand would appreciate any recommendations. I remember the C&C cl...

bailey orion 430/4 2011 awning sizes

has anyone had any problems with awning measurement on their bailey orion. we have purchased a size 12 awaydaze  t...

Best route to Leiston / Beach View Holiday Park IP16 4TU

We are going down to Beachview at Leiston towing our single axle caravan and I was looking into the route from the...

Sites close to M6 Staffordshire

Hi can anyone recommend a site reasonably close to M6 around Stafford way? We will be travelling to Scotland and t...

Sites close to M6 Staffordshire

Hi can anyone recommend a site reasonably close to M6 around Stafford way? We will be travelling to Scotland and t...

Cracks in top of caravan

I have recently found a couple of cracks on the top rear corners of our eccles 554 van , it is a 2013 . I took it ...

For Sale

Burstner Nexxo t720 - 2012 - £44995

Burnster Nexxo t720

Low Low profile chasis motorhome

Rapido A-Class 999M - 2009 - £54995

Rapido A class 999M

This flagship Rapido model is based on the Mercedes Sprinter chassis (very rare) with the fantastic Mercedes 3.

Monaco Knight 38 PDQ - 2006 - £79995

x

THE most practical RV layout ever on the market with four slide out rooms, full cream leather interior and light oak cabinetry creates even greater feeling of space.

Niesmann+Bischoff Arto 69 PL (auto) - 2011 - £61995

Niesmann + Bischoff Arto 69 PL

One of the best build qualities in the industry including aluminium sandwich construction, deep double floor and front electric thermo windscreen blind make this motorhome fully winterised.

Research signals surge in caravan holidays over stress of leaving pets behind

Do you take your pet along for the ride?

Surge in caravan holidays may just be attributed to our furry, four-legged friends

Moment caravan crashes caught on film

What do you think went wrong here?

Moment caravan careers out of control captured on lorry driver's dashcam

Moment caravan is blown off mountain road and plummets down cliff caught on film

The moment a caravan was blown off a notoriously windy mountain road has been caught on film

Wind blows caravan off mountain road in heart-stopping video

Have you won one of five CoPilot Caravan sat nav apps?

Read on to find out if you're a winner

Read on below to find out if you're a winner in our latest CaravanTimes giveaway