04 February 2025
Do you pay council tax on a static caravan?
6 minutes
Static caravans (sometimes called a caravan holiday home or lodge) offer a relaxing getaway or, in some cases, a cheaper and more flexible alternative to conventional homes. One potential cost static caravan owners might be wondering about is council tax. Do you pay council tax on a static caravan? In this article we’ll provide the answer to that question, and cover everything else you need to know about static caravans and council tax.
Understanding council tax
To understand how council tax applies to a static home, we first need to reiterate how council tax works more generally in the UK.
Council tax is a charge collected by local authorities to help fund the services they provide to residents. These include things like waste and recycling collections, road maintenance, libraries, local schools, police and fire services, and public transport.
How is council tax calculated?
Council tax is charged according to the value of a property. In England and Scotland, homes are valued across eight different council tax bands (nine in Wales). These range from A to H (or I), where Band A applies to properties with the lowest value. Typically, the more expensive your home is, the more council tax you tend to pay.
Local councils will set their own tax rates for each band. And there are various circumstances in which you might be entitled to a discount, a reduction, or even an exemption. More on this below.
Do you pay council tax on a static caravan?
So, now we’ve covered how council tax works. But do you need to pay council tax on a static caravan? Well, this very much depends on your situation — and on how you’re using your caravan:
When council tax does and doesn’t apply to static caravans
The only time council tax applies to a static caravan is when it’s your or another person’s sole or main residence. It’s classed as your main residence if it’s where you’re primarily living.
If your static caravan is not your main residence, you’ll already be charged council tax on the other property (i.e., where you are living). This means you don’t need to pay for your static caravan as well. But if someone else is using your static caravan as their primary dwelling, council tax will also apply.
So, to repeat: council tax is applicable if the static caravan is being used as primary living accommodation.
Read more: What to know about caravan insurance
Holiday parks vs residential parks
Your static caravan will most likely be in either a holiday or residential park.
- Holiday parks: most static caravan sites will be holiday parks. Static caravans located in holiday parks are for recreational purposes only, not residential use. Therefore, you don’t need to pay council tax on them. But as with other commercial properties, the holiday park itself is charged business rates by the council to fund local services. The owner of the caravan site will most likely pass a percentage of this charge onto you and other park users. Usually it’s included in your site fees as the owner of the caravan.
- Residential parks: you’re allowed to live permanently in a static caravan if it’s in a residential park that has the relevant permissions from the Local Planning Authority. In this circumstance, you will be charged for council tax.
Council tax on a caravan in your garden
Another common place to keep your static caravan is your garden. As above, as long as it’s not being used as a main residence, you don’t need to pay council tax on it. But if you’re living in it instead of your home, or if someone else is living in it, then council tax does apply in this instance.
What is the tax loophole for a static caravan?
You sometimes hear about a council tax loophole for static caravans. But it’s actually a common misconception, rather than a valid route to take.
It relates to people living in static caravans in holiday parks. This has been referred to as a loophole because, even though it’s their primary residence, they’re not paying council tax due to their caravan being located in a holiday park. But in reality, this set-up isn’t a loophole — it’s illegal.
Holiday caravan sites aren’t licensed for residential use by councils. In fact, many will close over the winter for exactly this reason, to help deter people from living there all year round.
There may also be a maximum length of stay. So, anyone taking advantage of this “loophole” may actually be committing two crimes: not paying council tax on their main residence, and permanently living in an unlicensed holiday park. If this was discovered, they (and the park operator) could face fines, penalties, and other legal action from the council — including eviction.
Because of this, many holiday parks will request proof that your caravan isn’t your primary home. You may be asked to provide the council tax bill from your main property, for example.
What is the law on living in a static caravan?
It’s perfectly legal to permanently live in your static caravan — as long as it’s in a location where this is allowed. This either means on land you own or rent with permission from your local authority, or on a licensed residential site. And of course, you’ll need to make sure you’re paying council tax if you live there.
What counts as permanent residence in a static caravan?
Your static caravan is generally considered your main dwelling if:
- It’s where you spend the majority of your time
- You have a contract with the site that shows it’s your main residence
- Other properties you own are occupied by other people
- You can’t prove that you live at another address or pay council tax elsewhere.
Static caravans vs park homes and second homes
Static caravans have similarities with other types of more permanent homes, but there are some differences to be aware of:
- Mobile homes / park homes: nowadays, mobile homes are usually referred to as park homes, but they mean the same thing. Like static caravans, these are located in licensed residential parks. But unlike caravans, they’re built to standards and regulations better suited to living in them all year round, including over the winter. As they’re residential properties, you have to pay council tax on park homes.
Read more: Residential park home insurance
- Second homes: second homes are properties people own besides their main home. This includes holiday homes and cottages. Second homes are charged for council tax, even if they’re empty or only used as temporary accommodation.
Read more: Holiday let insurance
How much is council tax on a static caravan?
The vast majority of static caravans are valued at council tax Band A, so the cheapest level. Generally speaking, you’re probably looking at around £1,000 to £2,000 per year. But each local council sets its own rates, and these vary depending on the area you live in within the council’s jurisdiction.
So, to work out the exact cost, you’ll need to check with your council. Local authorities will list council tax costs for each tax year on their websites. And be sure to double check that your caravan is actually Band A, because this isn’t always the case.
Possible discounts, reductions, and exemptions on your council tax
As mentioned above, there are various discounts, reductions, and exemptions available for council tax. Here are some of the most common examples:
Discounts
- Single occupancy
- “Disregarded” people such as children, students, long-term hospital patients, prisoners, and people with severe mental impairments.
Reductions
- People with a low income
- People who claim benefits.
Exemptions
- Properties where everyone is a full-time student
- Repossessed properties
- Unoccupied properties due to caring responsibilities.
What other bills do you pay on a static caravan?
While you might not need to pay any council tax on a static caravan, or be paying much less than you would on a flat or house, there are other costs to keep in mind:
- Site or pitch fees: these cover your spot (essentially renting the land), services and facilities provided by the site owner, and any contribution to what the caravan park owes the local council (which will be much less than paying a full council tax bill yourself). They’re usually a few thousand pounds a year and include VAT.
- Utility bills: these cover gas, electricity, and water supply.
- Transportation fees: these are the costs associated with moving your caravan to the site.
All in all though, a static caravan is likely to work out cheaper than other housing options.
Quickfire summary: do you pay council tax on a static caravan?
As most static caravans are classed as holiday homes, you usually don’t need to pay council tax on them. However, if your caravan is being used as a main or sole residence, it will be liable for council tax. If this is the case, make sure it’s on your own land or a residential site, as holiday parks aren’t licensed for permanent living.
If you do have to pay council tax, it’ll probably be the lowest band. You may also be eligible for discounts, reductions, or exemptions. And if you’re not liable for council tax, you’ll probably still need to contribute to council services via your pitch fee to the holiday park. It’s always worth staying up to date with any changes to the legislation around council tax, as this could impact what you pay in the future.
Need comprehensive insurance to protect your caravan? Look no further than Howden for the right policy.
Read also: