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

2011 sterling elite amber

hi all first time on the site on a super pitch how do I connect the water suppl to a sterling elite amber 2011 che...

Avondale Landranger 6400 (2000 - 2004) Wanted

Hi, If anyone has an Avondale Landranger 6400 (2000 - 2004 model) and is interested in selling please let me know....

Bailey Ranger 470/4 2008

Hi to All, I have just purchased the above Bailey and am concerned after reading a few forums which inform me that...

STORM WATCH

First snow and now storms!  Who else can believe the UK is currently being battered by the NINTH storm of the wint...

Mirrors

Hi all just changed my car to 2008 Hyundai Santa Fe crtd cdx+, can anyone recommend some mirrors as the ones I hav...

Freshwater East Caravan Club Site

Apologies if this has already been asked, but does anybody now when Freshwater East Caravan Club site will be open...

Malvern area CLs/CSs....recommendations anyone?

We are attending the Jazz Festival in Upton-on-Severn in June (staying on site for the festival) and plan to stay...

sad news

hi all sad to see john wickersham has died he gave us some great tips he will be badly missed r.i.p john cheers to...

Carry on Caravanning gets six-part series!

Channel 5’s hit documentary, Carry on Caravanning, is set to return to our screens after being given its very own ...

Bailey Pegasus genoa

We are considering purchasing a 2016 series 4 Genoa but all reviews show the front bunks being made into a double ...

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.

Introducing Swift Command for 2016

Check out our video above to find out what Swift Command can do

Swift Command heralds new era in caravanning technology

Storm Imogen continues to batter UK

Storm Imogen is set to continue to cause havoc across the UK

Winds of up to 96mph recorded as Storm Imogen brings disruption to parts of the UK

Taking an intricate look at Auto-Sleepers' new Peugeot van conversions for 2016

Spacious and economical, check out Auto-Sleepers' new van conversions above

Take a look at Auto-Sleepers' seven new Peugeot van conversions in our video here

Up close and personal with the Majestic motorhome rage from Marquis Leisure

The Marquis Majestic motorhome range has been expanded for 2016

Take a closer look at the Majestic motorhome range from Marquis Leisure in our latest video here