Buying one
VAT on static caravans
The VAT on a new static caravan depends on its size and the standard it’s built to — 20%, 5% or zero. Pitch fees on holiday parks carry 20%. Here is how HMRC’s rules work.
On this page
At a glance
- New caravans no more than 7 m long and 2.55 m wide: standard rate, 20%.
- Larger caravans built to BS 3632 (any version in force from 17 June 2005, including 2023): zero-rated.
- Larger caravans not built to BS 3632 — most holiday caravans: 5%, since 6 April 2013.
- Holiday park pitch fees: 20%. Separately metered electricity and gas: 5%. Metered water and sewerage: 0%.
The size test comes first
HMRC sets out the rules in VAT Notice 701/20. A new caravan that is no more than 7 m long and no more than 2.55 m wide — the size of a towable caravan — is standard-rated at 20%. Length is measured without the towbar or drawbar.
Bigger caravans: zero or 5%
A caravan over 7 m long or over 2.55 m wide is taxed according to the standard it was built to:
| Built to | VAT |
|---|---|
| A version of BS 3632 in force on or after 17 June 2005 (BS 3632:2005, :2015 or :2023) | 0% — zero-rated |
| Anything else — typically BS EN 1647, the holiday caravan standard | 5% — the reduced rate |
Two dates matter:
- 6 April 2013. The 5% rate for large caravans not built to BS 3632 was brought in by the Finance Act 2012, with effect from this date. Before then, all such static caravans were zero-rated. Second-hand caravans that were first occupied before 6 April 2013 are still zero-rated when they’re sold.
- 30 September 2024. The Value Added Tax (Caravans) Order 2024 changed the zero-rate test from BS 3632:2005 specifically to any version of BS 3632 in force on or after 17 June 2005 — so caravans built to BS 3632:2023 qualify too.
What shares the caravan’s VAT rate — and what doesn’t
With a zero-rated caravan, things a builder would normally fit in a new house — sinks, baths, toilets, fixed partitions, water heaters — share the zero rate. Removable contents such as tables, chairs, mattresses, cushions, fridges, carpets and washing machines are standard-rated at 20%, and have to be valued separately.
Other points from the Notice:
- a reasonable charge for delivering, unloading and positioning a caravan sold by the supplier is part of the price, and takes the caravan’s rate;
- skirting supplied with a caravan takes the caravan’s rate (HMRC has separate guidance on verandahs sold with caravans);
- charges for connecting the caravan to metered gas or electricity are 5%, and to metered water or sewerage 0%.
Pitch fees and other park charges
| Charge on a holiday park | VAT |
|---|---|
| Pitch fee | 20% |
| Rates recharged by the park | Treated as part of the pitch fee |
| Separately metered electricity or gas | 5% |
| Separately metered water or sewerage | 0% |
| Gas, electricity or water not metered for each pitch | Follows the pitch fee (20%) |
| Storage, drain-down, repairs and booking services | 20% |
| Transfer fee or commission when you sell on the pitch | Follows the pitch fee (20%) |
Pitch fees on holiday parks are standard-rated whatever the pitch is used for. Residential park home pitch fees, by contrast, are exempt. The NCC model agreement expresses the transfer fee as a percentage “plus VAT”.
Letting
Holiday lettings of caravans on parks held out for holiday use are standard-rated — but that only matters if your letting business is registered for VAT. See letting your caravan.
Sources
Checked 6 October 2026. We wrote this guide from these sources, in our own words:
- HMRC VAT Notice 701/20: caravans and houseboats (updated 3 October 2024) (gov.uk)
- VAT Act 1994, Schedule 7A (reduced rate) (legislation.gov.uk)
- Value Added Tax (Caravans) Order 2024 (legislation.gov.uk)
- HMRC Revenue and Customs Brief 12 (2015): verandahs sold with caravans (gov.uk)
- BSI: BS 3632 Residential park homes (knowledge.bsigroup.com)
- NCC model Combined Purchase and Licence Agreement (June 2024) (thencc.org.uk)
Travel Trailers is an independent guide. It is not owned by, or connected to, any holiday park operator, caravan manufacturer, dealer or trade body. Spotted something out of date? Tell us.