Late on 28 May David Gauke announced a change in government VAT policy on caravans and freshly baked pies. Static caravans that are not designed to be lived in all year round which have been zero-rated will become subject to 5% VAT. Pies (and pasties) which are taken out of the oven and allowed to cool naturally will retain their zero rate.
Both changes appear to have arisen from concerted lobbying from within the respective industries and this contrasts with the listed building VAT campaign which has been customer led and has been less successful.
The zero rate for caravans had been intended to cover residential caravans not static holiday caravans but had come to apply to many...
