Zero VAT rating for caravans confirmed

Caravan owners will continue to be able to qualify for the zero rate of VAT on residential caravans as long as they were built since June 2005 HMRC has confirmed in a policy paper.

The Value Added Tax (Caravans) Order SI 2024/910 ensures that caravans manufactured to the updated British Standard Institution (BSI) standard (BS3632) can qualify for the zero rate of VAT.

The instrument removes specific references to the 2005 and 2015 versions of the standard and applies the zero rate to caravans meeting all versions of the standard taking effect on or after 17 June 2005. It also zero rates caravans that meet new versions of the same standard which may be issued in future by the BSI.

The legislation comes into force on 30 September. HMRC adds that the measure does not introduce a change of VAT rate rather it serves to...