In the 2012 budget it was announced that from the 1st October 2012 VAT (Value Added Tax) will be applied to static caravans, which could make your next holiday home 20% more expensive to buy. Previously, static caravans were in what the government has referred to as a 'Tax Loophole', meaning that they were 0% tax rated. The new budget will bring static caravans in line with touring caravans, meaning they will be taxed at the current VAT rate of 20%.
This issue was brought up by the Dumfries and Galloway MP Russell Brown in the House of Commons. He says his constituency will be hit hard by the tax.
The owner of one of the region's leading caravan park companies, Duncan McCready of D&M Leisure Parks said it could threaten the survival of his business.
He has warned it also affects other caravan parks and businesses.