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Say NO! to VAT on Caravan Holiday Homes
 
Friday, 24 Nov 2017

Opposing VAT on Caravan Holiday Homes


VAT on holiday caravans to be levied at 5%
 

The Caravan Industry expresses profound relief as Treasury move preserves jobs

The NCC, the industry body that represents the UK caravan industry, has expressed profound relief at the announcement that Treasury is to shelve initial plans to levy VAT at standard rate on the sale of caravan holiday homes. Instead of a tax hike to 20%, which would have added nearly £6K to the sale of an average caravan holiday home, Treasury today confirmed that from 1st April 2013 ‘static’ caravans will be VAT-rated at 5%.

The NCC’s Director General, John Lally, speaking shortly after the announcement, said: “Treasury and Ministers listened to our arguments. From the beginning, we maintained that Government had underestimated the impact and overestimated the net revenue of imposing this tax. The NCC and BH&HPA working together put forward compelling evidence which clearly showed the potentially devastating effect this tax would have had on an industry that is crucial to the well-being of both domestic tourism and of British manufacturing.

“Without doubt, this move has saved thousands of jobs – and probably averted many business failures. With a united voice, industry worked to prove to Government that if people don’t buy caravans, a whole chain reaction is put in place, affecting a range of businesses, employment prospects in many deprived areas and last, but not least, British tourism receipts.

“We were very fortunate that Graham Stuart MP immediately saw the dangers and recruited MPs from across the House – and indeed across the UK - to support his efforts to avert this tax. This culminated in 77 MPs supporting his Early Day Motion in opposition of VAT at standard rate on caravans.

“What we have is a manageable increase for an industry that is in gradual recovery after the credit crisis. This move allows our industry to continue to provide a vital component to British tourism, to be competitive, to succeed.”

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