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.
- 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.
- 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.