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Sunrise Reports on Caravan Tax, and why everyone is so confused!

Industry: Tourism/Vacation

Static Caravans are subject to 5% VAT, instead of the 20% rate announced in the 2012 budget. Manufacturers are worried about a decrease in sales

United Kingdom (PRUnderground) January 4th, 2014

Previously VAT was levied on all caravans, the only VAT’able part of the caravan were its removable contents, this has now changed and confused everybody even the VAT office! The caravan industry signed petitions against the introduction of VAT on static models and the intial 20% (which could have sent all prices rocketing!) has been brought down to a more manageable 5%

Impact of VAT

Andrew Percy, a Conservative MP, was one of many to oppose the caravan tax

The MP for Brigg and Goole said: “Obviously it would be better if it was 0%, but the industry was perfectly clear at the time that 5% would have a limited impact, if any.”

Hull is well known as the hub of caravan births! 95% of static caravans are manufactured there.

Victory Leisure Homes Director, Peter Nevitt, expressed his concern for absorbing the extra tax on new caravans.

He said: “Anything that increases the retail selling price of the caravans is hard to take. The 5% VAT is something we could have done without.”

Hear hear!

Holiday park sales

Thousands of Static Caravans are bought or sold at holiday parks across the UK, park bosses worry the new caravan tax could scare off many owners from upgrading their old models, as well as new customers looking to buy.

Manager of Skegness Water Park, John Chappell said “If you buy a new caravan and decide later you want to sell it, then there will be VAT payable on the used caravan as well as on new sales.”

The entire caravan industry was hoping for a last minute boost in sales before the VAT was introduced, unfortunately most people didn’t know about it and the freezing Spring weather was already against us!

Here at Sunrise we have kept our prices competitive to beat this caravan tax, you’ll still find us to be among the cheapest and best quality for your money! Check out our used static caravans and see for yourself!

About Sunrise Holiday Homes

Sunrise Holiday Homes is a family run business specialising in off-site static caravans. We are experienced in every aspect of the static caravan and mobile home industry, including static caravan transport, site & levelling, caravan park sales, trade and retail sales, logistics and maintenance. We pride ourselves on the high standards of used static caravans we supply, and our competitive after sales service.
We buy caravan\’s from you too!

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