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HMRC internal manual

VAT Margin Schemes

Specific circumstances: Second-hand caravans


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

  • more than 7 metres (22.9 feet) long; or
  • more than 2.3 metres (7.5 feet) 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 trader is using a method of apportionment as described in Notice 701/20Caravans and houseboats he may apply the 10% apportionment to the margin rather than the full selling price. Further information can be found in V1-8 Land and property.