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Tax Chat - ...and don’t forget “Caravan Tax”
In all the excitement over the government’s u-turn on ‘pasty tax’, you may have missed the other important change involving static caravans.
The Chancellor’s Budget day announcement that 20% VAT would be imposed on these caravans from October 2012 was greeted with dismay by the industry. It is an important issue for Yorkshire in particular: around 95% of the UK’s static caravans are manufactured in Yorkshire and the industry directly employs around 6,000 people.
So, last night’s announcement that VAT would only be imposed at a much reduced rate of 5% - and that this will not come into force until April 2013 was very welcome.
Let’s hope that any future attempts to increase the tax base by widening the scope of VAT are more carefully thought out and that they at least get the benefit of a decent consultation period in advance of any changes being announced.
