Currently there is a single dividing line between a zero rate of VAT on residential park homes and 20% on static holiday caravans and there have been issues about which side of the dividing line a particular transaction falls.
From 6 April 2013 the Government has introduced a 5% rate of VAT on static holiday caravans and touring caravans longer than seven metres. Other tourer caravans will remain standard rated.
Residential and holiday static caravans will be distinguished on the basis of whether they meet British Standard BS 3632. The sale of static caravans that meet BS 3632 will remain zero rated.
SDLT disadvantaged areas reliefbusiness
This relief, which creates an exemption from SDLT for transactions of residential property in disadvantaged areas for consideration up to £150,000, will generally be withdrawn in relation to transactions with an effective date on or after 6 April 2013.
