Caravan tax loophole is closing

Aug 27 2008 by David Rutland, Rhyl Visitor

CARAVAN owners will soon be forced to pay council tax as part of a drive to stop unscrupulous owners from cheating the system out of millions.

From Llandudno to Talacre and beyond, the North Wales coast is famed for its long sandy beaches and tens of thousands of caravans belonging to holidaymakers.

The region’s status as a thriving holiday destination pumps millions of pounds annually into local economies, but that could change if laws are put in place to prevent people taking advantage of the system.

In 2006, Conwy County Council set up the Transient Population Task and Finish Group to identify the amount of people living unregistered in the county borough in houses of multiple occupation and all year round in static caravans.

The results are now in and show that 4,000 more people are registered with GPs in Conwy than actually live there.

A similar number live unregistered in Denbighshire.

And now, the Welsh Assembly Government is to apply for a legislative competency order giving local authorities the power to tax static caravans.

Cllr Bob Squire, who chaired the group, said: “It’s a good idea. People don’t just come here for two weeks holiday, they are here for 12 month per year or for 10 months and then holiday somewhere else for two months.

“They’re receiving all the services, all the hospital services, GP services and they pay nothing for it. We are paying for them.”

As well as not contributing to local communities through council tax, the permanent vacationers are also depriving local authorities by not registering as living in the area.

Official population estimates, on which the Welsh Assembly Government bases the councils’ grants, are based solely on the electoral roll.

This means that many residents living in Houses in Multiple Occupation (HMO) are not accounted for and neither are people using caravans as their permanent homes.

This means that most residents living in HMOs are not accounted for and neither are people using caravans as their permanent homes.

A pilot study of some caravan sites in Towyn and Kinmel Bay established that many people were resident in holiday caravans as the main all-year-round home, with 361 having claimed a bus pass and a small number claiming Housing Benefit and Jobseekers Allowance.

Cllr Squire added: “I believe that we have proved our case already but am pleased that the Welsh Assembly Government now intend applying for a Legislative Competency Order.”

Have your say. Do you think static caravan owners should be taxed? Write to Visitor Letters, 84 High Street, Rhyl, LL18 1UB, or e-mail david.rutland@northwalesnews.co.uk