From 6 April 2013, instead of taxing some caravans at the standard rate or at the zero rate, there is a third rate: the reduced rate of 5%.

The reduced 5% rate applies to caravans that exceed seven metres in length and do not qualify as ‘residential caravans’ under British Standard BSI 3632:2005 or BS 3632:2015. So, all holiday caravans, not just mobile caravans, are reduced-rated, e.g. static caravans that cannot be occupied all year round.

If a caravan is less than seven metres in length, it is standard-rated as a touring caravan.

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