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HMRC to end concessions for caravan owners

Posted by Greg Throughton

Caravan refrigeration owners will be interested to hear that a number of concessions for caravan owners will cease to apply from 2012 as they conflict with current European Union (EU) laws.

The concessions have been removed as they fall outside the scope of HMRC's administrative sphere of influence and the extra statutory concessions (ESCs) as they are contrary to EU law.

From January 1st 2012 caravan owners will no longer receive concessions related to business rates, water and sewerage charges and first-time connection to utilities.

Mike McLachlan, senior VAT adviser, said: "We recognise that caravan site owners may have to make adjustments and that caravan owners will now incur VAT on supplies that were previously zero rated or outside the scope of VAT.

He added that a 12-month period has been agreed to allow caravan owners to get to grips with the lack of concessions and take the necessary measures.

The Camping and Caravanning Club recently urged the government to review its licensing documentation for caravanners which may become important as caravanners will be hoping to discover how these new rules will affect them.