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Say NO! to VAT on Caravan Holiday Homes
Wednesday, 24 Oct 2018

Opposing VAT on Caravan Holiday Homes


Published on 19/04/2012

There was a very sustained and passionate exchange from all MPs in support of our industry in yesterday’s debate in the House of Commons. We achieved the best success of the day with the closest vote in the House since the imposition of tuition fees according to the BBC.

A positive step forward for opposing VAT on Caravan Holiday Homes:

  • Vote in House of Commons shows significant cross-party support against the proposed introduction of 20 per cent VAT on sales of caravan holiday homes.
  • Government forced to extend consultation period deadline to 18 May.
  • The NCC warns of the potential UK wide job losses and slump in tourism income.

The voting was close – 262 ayes and 287 noes so the amendment – New Clause 6 – to ensure that holiday caravans remain as zero rated was not carried forward for inclusion in the Finance (no.4) Bill. Seventeen Conservatives rebelled and the government's majority was cut by more than two-thirds to just 25.

However as a result of sustained pressure from a number of MP’s who spoke in our support, and following a request from Graham Stuart MP, The Exchequer Treasury Minister David Gauke MP announced an extension was being granted to the consultation until Friday 18th May 2012.

The debate in the Commons

What this means for us:

With the consultation deadline extended we need to ensure that this pressure is maintained and that HMRC receive as many responses to their consultation as possible. The NCC is working with the industry and consultants KPMG to calculate the cost to the economy; this is in the belief that Government has significantly underestimated the impact (which HMRC forecast at 30% reduction in demand) and overestimated the potential revenue to be generated (£15m in year 1 increasing to £45m in year 5). In particular, the effect of job losses across the supply chain and on tourism receipts has been virtually ignored.


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