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.