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HMRC internal manual

VAT Valuation Manual

Specific applications: caravans - removable contents: used caravans

There are two common alternatives. Traders are expected to apply either of these consistently and not alternate between methods.

  1. Actual values

A trader may elect to calculate a precise value for each of the standard-rated removable items. He is expected to be able to produce adequate documentary evidence in support of each valuation if we require it.

  1. 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.