Static caravan tax appeal rejected

A group of East Yorkshire MPs have fought back against the government’s decision to raise the VAT charge on static caravans this year.

Chancellor George Osborne announced in last month’s Budget that static caravan sales VAT would increase from zero to 20 percent as part of new income generating measures. However, the decision has come under fire from the outdoor leisure industry, which believes the price hike will harm manufacturers and tourism, as higher costs will deter people from choosing a holiday lodge in the UK.

East Yorkshire is one of the areas thought to be potentially most affected by the VAT hike as it has a thriving holiday lodge and outdoor leisure industry. Several MPs, led by Graham Stuart, David Davis, Alan Johnson, Diana Johnson and Karl Turner from East Yorkshire constituencies, proposed an amendment to the bill. Although 17 Conservative MPs voted in favour of the amendment, however, 25 voted against further changes to the VAT increase.

If not overturned between now and 1st October, the new tax will be applicable to some larger touring caravans – such as Bailey’s new Retreat range of seasonal tourers – as well as static models.

A government petition has now been set up to try and overturn the new tax legislation. Click here if you would like to sign it.

With attempts to reject the VAT increase stalled, anyone thinking of upgrading or purchasing a static caravan this year is advised so before 1st October to get the best deal. Coast can offer you comprehensive static caravan insurance to protect your investment in the event of damage. Call Freephone 0800 614 849 to find out more about our caravan insurance.