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

Winter Touring

Who is away over the Festive period?  We away from the 27th until the 2nd of January. Looking forward to getting a...

help me with my control pad

Hi  I am brand new to the caravan world and purchased -collected a sterling eccles sport 6 berth 586 model 2014  I...

Spare Parts

Hi all, we have a Bailey Senator Indiana series 5 with a cracked front window. Does anyone know of any breakers th...

Are caravan shows the cheapest place to buy a caravan?

Hi all, I've put a deposit down on a new Caravan. It's a Sprite Major 6td with the diamond pack for £16,400. I've ...

new zealand

hi all hope you are all well just seen the earth quake  on the telly looks bad all the houses and roads a lot of p...

2017 Sprite Major 6TD price and value for money ???

Hi everyone, I've just dived straight in and put a deposit on a 2017 Sprite major 6td. The offer was £16,400 with ...

Lunar Design Awards

I am interested that Lunar have done well with the design awards.  We bought a new Venus in the Spring and here is...

Motorhome search.

My wife and I have taken early retirement and intend to travel abroad long term for the next five years. We've dec...

Motorhome search.

My wife and I have taken early retirement and intend to travel abroad long term for the next five years. We've dec...

What's the difference

Hi all we purchased a new 2017 model Bailey Unicorn Cadiz at the NEC this month, with a collection date of Dec or ...

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.

PLANS VETOED: Essex caravan park plans vetoed again

Possible site location at Port Flair

Plans for a 70 pitch caravan park in Essex have been rejected by the local council for a second time.

Caravan site gutted in huge fire causing £1m in damage

Burnt out caravans at the site. Pics from Devon & Somerset Fire Service

An enormous fire has ripped through 160 caravans causing £1 million in damage at a site in Somerset

Caravan dealership launches new online store

Managing director Chris Talbot

Cheshire's largest caravan dealership, Leisure Sales, has unveiled its brand new online accessory store

Caravan manufacturer invests £8 million in new facility

Jim Bolton (Swift Group) and Steve Hewick (Houlton) review progress on the ground works

Manufacturers Swift Group is developing a new £8 million purpose built modern manufacturing facility at its headquarters in Cottingham, Yorkshire