Caravans targeted for tax changes in Budget

It is not the best news for caravan owners around the UK. Much like fans of cigarettes, pasties and bacon rolls, the annual Budget has seen Chancellor George Osborne announce a number of changes to the tax system, meaning that several previously un-taxed items are now falling foul of new levies. 
Caravan Times looked at recent changes in detail, including the slightly unappealing news that static caravans will now be hit with a 20 per cent rate of VAT - something that did not previously apply to static caravan insurance customers in the UK. 

The change will come in on October 1st, so could result in a rush for people to invest in their dream mobile home. Larger touring caravans could also be subjected to the new laws, which have been worded in a very specific - yet nonetheless vague - manner. 

Mr Osborne said that a caravan that is "designed and constructed for continuous year-round occupation" will still receive a zero rate. Touring caravans that are "under seven metres long are already standard-rated", according to HMRC, though many of the larger models may be hit by standard taxation. 

Simon Howard, representing Bailey Caravans in conversation with Caravan Times, said several models could be affected. He continued: "It may well affect the Retreat as well as some of the larger touring caravans, but we are waiting for confirmation from HMRC on this."