VATMARG13650 - Specific circumstances: Second-hand caravans

The sale of a second-hand caravan is zero-rated if the caravan is either:

• more than 7 metres (22’ 11”) long; or
• more than 2.55 metres (8’ 4”) wide.

However, the removable contents are standard-rated.

The margin scheme may be used for the sale of used caravans provided all the record keeping requirements of the scheme are met.

If the business is using a method of apportionment as described in Notice 701/20 Caravans and houseboats it may apply the 10% apportionment to the margin rather than the full selling price. Further information can be found in VAT Land and property.