Osborne to Change Tax Proposal for Static Caravans

May 29, 2012 - PRLog -- Caravan manufactures today welcomed the news by the Chancellor George Osborne to U-turn its 20% tax proposal for new static caravans.
After disapproval by MPs from all parties the government have now decided to charge a 5% VAT for new static caravans, instead of the announced 20% tax in the Budget in March.

Many caravan owners have welcomed the news of the tax U-turn as victory and are able to buy a new caravan in confidence without paying a 20% tax. The new 5% rate will run from October to April.

The 20% tax on new static caravans was announced in the Budget in March by Chancellor George Osborne. The reason for static caravan tax was to bring it in line with other caravans, such as motorhomes and touring caravans, which currently stands at 20%.

The trade organisation representing the UK caravan industry that’s The National Caravan Council claimed that the tax rise will lead to of 5,000 workers being made unemployed at holiday parks and 1,500 more in the manufacturing sector.
The majority of static caravans are manufactured in Yorkshire and Guy Sparkes, the managing director of Haven Caravan Park, said “It shows the government has listened to all the warnings and predictions that the industry has put forward”.

MPs in Yorkshire joined forces with local manufactures and employers in making their voices heard. The MPs also ran a campaign in protest of the 20% tax, which they presented as a signed motion in the house of common.

The MP David Davis described the drop in the tax as a “great victory for the people who opposed the 20% policy” and another MP Graham Stuart said “I am delighted with this decision, as are the local caravan manufactures”.

Economic experts predicted that it would have resulted in thousands of jobs and cost the government millions in unemployment benefits and lost income tax.

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