Niall Hampton
Editor

See other Blog articles filed in ‘Travel and touring’ written by Niall Hampton
   
HM Revenue & Customs (HMRC) has just announced that it intends to end VAT concessions for caravan owners in 2012.

HM Revenue & Customs (HMRC) has just announced that it intends to end VAT concessions for caravan owners in 2012.

 

HMRC states that the decision to charge VAT both on water and sewerage services where actual consumption cannot be measured, and on first time connections to utilities previously zero rated for VAT, is because they are contrary to EU law.

 

So from 1 January 2012, caravan owners will no longer qualify for:

  • The recharge of business rates as outside the scope of VAT
  • Zero rate water and sewerage charges where actual consumption cannot be identified
  • First time connection to utilities as zero rated for VAT.

Mike McLachlan, Senior VAT Adviser for HMRC, said:

 

“We recognise that caravan site owners may have to make adjustments and that caravan owners will now incur VAT on supplies that were previously zero rated or outside the scope of VAT. We will offer a 12-month period of notice before the concessionary treatment formally comes to an end.”

 

HMRC has reportedly already discussed the impact of these changes with caravan representative bodies.

 

You can read the full HMRC announcement (there isn’t much more to it than this) online.

 

 

Share with friends

Follow us on

Most recent caravan reviews

The Practical Caravan 2017 Coachman VIP 565 review – 1 - The VIP’s looks have stayed fairly constant since 2012, yet it remains a desirable luxury tourer – plus, the front gas locker door boasts double locks (© Phil Russell/Practical Caravan)
The Practical Caravan Caravelair Antarès 476 review – 1 - The Caravelair Antarès 476's quirky, one 'eye' looks hint at the unusual layout inside – it has an MTPLM of 1200kg (© Phil Russell/Practical Caravan)
The Practical Caravan Buccaneer Galera review – 1 - The silver sides are new and give the 2017-season Buccaneer caravans a distinctive, upmarket look (© Andy Jenkinson/Practical Caravan)
The Practical Caravan Hymer Nova GL 470 review – 1 - Its external styling is a little boxy and retro, but there's no getting away from the Hymer Nova GL 470's £27,690 price and 1700kg MTPLM (© Practical Caravan)

Xplore 554

£15,599

The Practical Caravan Xplore 554 review – 1 - The new-for-2017 Xplore 554 is aimed at couples and has a 1335kg MTPLM (© Practical Caravan)
The Practical Caravan Knaus StarClass 480 review – 1 - A Continental van with its door on the UK nearside, shows that Knaus is committed to wooing British caravanners – does it work with the StarClass 480? (© Peter Baber/Practical Caravan)