Parliament debated and approved the legislation to introduce these changes on 3rd July. The Finance Bill has now passed to the House of Lords for final approval. The changes were:

• Only caravans that conform to BS3632:2005 and all earlier versions will qualify for zero rating.
• Caravans that conform to EN1647 will qualify for VAT at the reduced rate of 5%
• Caravans that are longer than 7 metres and/or 2.55 metres wide will qualify for VAT at the reduced rate of 5%

In all cases removable contents will continue to attract VAT at the standard rate of 20%.

HMRC have yet to issue guidance but the NCC are working with them to produce this and as soon as it is available we will let members know. In the meantime, an updated version of HMRC Notice 701/20 was published in April 2012 and this can be downloaded here