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

Opposing VAT on Caravan Holiday Homes


Adjournment debate – 26th April 2012

NCC heartened by strength of cross-party support against ‘caravan tax’

In last night’s Adjournment debate, a number of MPs from several parties, publicly questioned the imposition of 20% VAT on static caravans, which was called ‘the wrong tax at the wrong time’ (Greg Knight MP).

Several MPs voiced concern over the devastating effect it could have in their constituencies – not just on manufacturing but on tourism. The NCC’s figures on the projected drop in production (to under 11,000 units p.a.) and potential loss of jobs across the entire industry (which could run to 7000 or more) were quoted in the House.

Among many statements in support of the industry, Conservative MP Graham Stuart said: ‘Buy a country cottage for £240,000 as second home and pay 1% tax – buy a static caravan holiday home for under £24, 000 s and pay 20 times more tax – when it’s used for same purposes. This is not getting rid of an anomaly but creating one.’

Graham Stuart MP concluded: ‘Treasury hasn’t done its homework … Listen and reconsider.’ Treasury Minister David Gauke responded that the aim was to ‘create a level playing field’ over VAT with ‘rules that are workable’.

The NCC is confident that research by KPMG on behalf of the two trade associations will prove that Treasury figures are indeed miscalculated, with impact underestimated and net gain overestimated. NCC Director General, John Lally said: ‘This will be far from a level playing field. As was stated repeatedly - by both Labour and Conservative MPs - this is a proposal that would cost jobs, potentially cause business failures and have damaging effects on areas reliant upon tourism.’

Hansard 26 April 2012
Adjournment Debate

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