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HMRC internal manual

VAT Land and Property

Caravans and houseboats: input tax on the development of a caravan site

A caravan site owner has broad obligations under pitch agreements to provide pitches, provide site facilities, maintain the site and service the pitches.

In the case of Stonecliff Caravan Park (VTD 11097) the Tribunal concluded that the construction costs of the site as a whole (including the construction of the pitches and the park infrastructure) were directly related to the obligations under the pitch agreements.

Recovery of input tax will be based on the liability of the supply of the pitches, not the supply of caravans.