Specific applications: caravans - removable contents: used caravans
There are two common alternatives. The elected method should be used consistently.
- Actual values
This method requires a precise value for each of the standard-rated removable items. Documentary evidence must be available to support each valuation.
- Standard apportionment of values
This is a method that has been agreed with the National Caravan Council Ltd and the British Holiday and Home Parks Association Ltd. Under this agreement, the value of the standard-rated removable contents should be taken as 10% of the tax-exclusive selling price of the complete caravan.
An example of how to calculate the input tax element where a caravan is sold at a tax-inclusive price is given in Notice 701/20.