Dear All,
Please find enclosed the law changes regarding caravan width which is now being applied from April 20th 2010. This is now confirmed by the NCC.
PRESS RELEASE
Wider caravans behind cars to become legal after 20 April 2010
VAT no longer zero rated on new wider caravans
The NCC (National Caravan Council) has received confirmationˇ fromˇ Government that amendments have been laid to the Road Vehicles (construction and use) Regulations 1986 to allow conventional cars to tow touring caravans and other trailers up to 2.55m wide in the UK.ˇ The change will come into force on 20 April 2010.ˇ From this date VAT at the standard rate of 17.5% will be applied on the sale of all new caravans up to 2.55m.ˇ
For many years UK legislation has been such that a touring caravan or any trailer up to a maximum width of 2.3m wide can be towed behind a conventional car. Wider units could only be towed by a motor vehicle with a gross weight greater than 3500kg.ˇ The new legislation is a result of a challenge by the European Commission, which according to DfT is to 'fulfil the European Community obligation on trailer widths set out in the Directive 97/27/EC, and to ensure harmonisation of Regulations across Europe'.ˇ This means that from 20 April 2010:
wider trailers and caravans up to 2.55m may be towed by cars lawfully in the UK
all new trailers and caravans up to 2.55m wide will attract VAT at the standard rate (17.5%)
HMRC are to issue a business brief amending the Public Notice 701/20 to reflect the new VAT treatment for sales of new trailers and caravans.
The NCC is in discussions with HMRC regarding the VAT implications for the sale of pre-owned caravans (over 2.3m wide) originally sold prior to 20th April 2010 at zero rate.
All comments welcome. We're chasing the HMRC for a comment as we speak.
Nigel Donnelly
Editor
Practical Caravan
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Please find enclosed the law changes regarding caravan width which is now being applied from April 20th 2010. This is now confirmed by the NCC.
PRESS RELEASE
Wider caravans behind cars to become legal after 20 April 2010
VAT no longer zero rated on new wider caravans
The NCC (National Caravan Council) has received confirmationˇ fromˇ Government that amendments have been laid to the Road Vehicles (construction and use) Regulations 1986 to allow conventional cars to tow touring caravans and other trailers up to 2.55m wide in the UK.ˇ The change will come into force on 20 April 2010.ˇ From this date VAT at the standard rate of 17.5% will be applied on the sale of all new caravans up to 2.55m.ˇ
For many years UK legislation has been such that a touring caravan or any trailer up to a maximum width of 2.3m wide can be towed behind a conventional car. Wider units could only be towed by a motor vehicle with a gross weight greater than 3500kg.ˇ The new legislation is a result of a challenge by the European Commission, which according to DfT is to 'fulfil the European Community obligation on trailer widths set out in the Directive 97/27/EC, and to ensure harmonisation of Regulations across Europe'.ˇ This means that from 20 April 2010:
wider trailers and caravans up to 2.55m may be towed by cars lawfully in the UK
all new trailers and caravans up to 2.55m wide will attract VAT at the standard rate (17.5%)
HMRC are to issue a business brief amending the Public Notice 701/20 to reflect the new VAT treatment for sales of new trailers and caravans.
The NCC is in discussions with HMRC regarding the VAT implications for the sale of pre-owned caravans (over 2.3m wide) originally sold prior to 20th April 2010 at zero rate.
All comments welcome. We're chasing the HMRC for a comment as we speak.
Nigel Donnelly
Editor
Practical Caravan
See us on Twitter
See us on Facebook