Undercover storage will usually generate a higher fee too. On average, a year’s storage for a single axle caravan is charged at about £370 twin axle caravans and motorhomes are usually larger therefore the fee charged can be higher. Site feesįees are influenced by the quality of the site, its geographical location, and the economics of the area. It is categorised as the ‘making or holding of investments’ and, as such, it does not ordinarily qualify for BPR, but this can be contested by specialist taxation and legal experts. Inheritance Tax – Business Property Reliefįor the purposes of Business Property Relief (BPR) from inheritance tax, caravan storage is not classed as a business. If the gross income from the site exceeds the current threshold of £82,000 then VAT is payable at the standard rate of 20%. Ms Bailey says operators should factor the cost of business rates into their calculations for the annual storage fee.
Some business rate relief may be available too. “CaSSOA can access a range of specialist advice for rate appeals,’’ says Ms Bailey. Rateable Values can be found using the property’s postcode at However, many storage operators have successfully challenged the rate set for their businesses, so if the assessment seems high, take specialist advice about appealing. The Valuation Office Agency sets the value on caravan storage sites and this is normally done by comparing the site with rental evidence of commercial storage land in the area. Business ratesīusiness rates are payable with the amount determined by the rateable value of the property. “Our advice would be to start small when it comes to planning permission, seeking further permissions for expansion later on,’’ says Ms Bailey. Site operators must comply with all the conditions attached to the consent because if they don’t permission can be withdrawn, or enforcement action taken. Ms Bailey says that in granting permission, a planning authority may attach conditions to the maximum number of caravans that can be stored, opening hours, site landscaping and security recommendations. The type of approval mostly needed is ‘B8 – Storage and Distribution’ to include outside storage. In the majority of situations, caravan storage requires change of use planning consent. So what is involved? Planning permission, business rates and security are all key considerations. It can therefore provide a good income for farmers with land or a building to spare. “Some storage providers are being paid in excess of £800 annually for each caravan, depending on the geographical location and level of security,’’ she says. Many providers of secure caravan storage are now operating waiting lists because of a big spike in caravan sales.īecci Bailey, manager of the Caravan Storage Site Owners’ Association (CaSSOA), says the organisation is actively looking for new members in England, Wales, Scotland and Northern Ireland. As a result, secure caravan storage is in high demand, presenting an opportunity for farm businesses. The domestic holiday market has grown since the pandemic was declared.