VAT ON HOLIDAY HOMES
The countdown has started for the charging next month of Value Added Tax on holiday caravans.
As of April 6, five per cent VAT will be added to the sale price of statics, including leisure lodges, which are longer than 7m or wider than 2.55m and which are not manufactured to British Standard BS3632.
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Originally the government had intended charging a 20 per cent rate but following an outcry from the industry, this was cut to five per cent.
Contents that are not part of the structure of the holiday caravan or leisure lodge but which are sold with it already attract the 20 per cent rate of VAT. That means items such as white goods, carpets, curtains and furniture.
VAT Information Sheet 11/12, available from Her Majesty’s Revenue & Customs (and downloadable online), provides guidance on the new tax.
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