Quote:
Originally Posted by mertle
Did anybody notice the holiday caravan tax. Is this now going to make a holiday dearer which case would decimate seaside resorts.
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No, it won't because any holiday park buying and renting static caravans is likely to be a VAT-registered business, i.e. they won't pay VAT on items the business buys, but will have to pay VAT on their sales to the public. A very small operation that is not VAT registered will be hit with a one-off 20% increase in the cost of buying a new caravan which they will then have to recoup through the price they charge holidaymakers.
Incidentally, it looks as if a ruling on EU law, which governs VAT, is at the root of this - don't be too quick to assume it's an underhand Tory tax-grab.