British Holiday Information

End of VAT concessions could lead to higher caravan rents

We could see higher rental rates for holiday caravans from 2012 after the Government announced it was withdrawing VAT concessions for caravan owners.

More than 300,000 caravan owners will, from January 2012, have to pay VAT on their caravans’ water and sewerage charges and business rates.

Currently, these services are zero rated for VAT, however, this does not comply with EU law and therefore VAT must be charged.