Annex 1: Minor Changes in the Law Change 96: Other general provisions: definition of “caravan”: section 1314
This change provides a single definition of “caravan” and is based on section 29(1) of the Caravan Sites and Control of Development Act 1960 and section 13(1) of the Caravan Sites Act 1968.
It brings the income and corporation tax codes back into line.
The change is relevant to sections 43, 207, and 248.
For the purposes of paragraph 3 of Schedule A (see section 15(1) of ICTA) “caravan” has the meaning given by section 29(1) of the 1960 Act. Paragraph 3 is re-written in section 207. The same definition is attracted by paragraph 4 of Schedule A (re-written in section 248).
Subsection (1) of section 1314 of this Act reproduces the effect of section 29(1) of the 1960 Act; and subsection (2) reproduces the effect of section 13(1) of the 1968 Act. The section does not, however, reproduce the effect of section 13(2) of the 1968 Act (which provides that a structure mentioned in section 13(1) (a twin-unit caravan) is not a caravan if its dimensions exceed specified limits). Neither the 1960 Act nor the 1968 Act extend to Northern Ireland. However, the Caravans Act (Northern Ireland) 1963 contains the same definition for Northern Ireland as is contained in section 29(1) of the 1960 Act.
It is not clear whether the 1968 Act modifications apply for the purposes of paragraphs 3 and 4 of Schedule A in ICTA. First, it is likely that Parliament intended that only one definition of “caravan” was to apply throughout the United Kingdom. But the 1968 Act does not extend to Northern Ireland. As the substance of the definitions in the 1960 Act (which applies to Great Britain) and in the Northern Ireland Act of 1963 are the same, a reference to the definition in the 1960 Act would be enough to secure a uniform definition.
Second, paragraph 3(2) of Schedule A in ICTA provides that “caravan” has the meaning “given by” section 29(1) of the 1960 Act. Section 13 of the 1968 Act modifies the operation of Part 1 of the 1960 Act (rather than the section 29(1) definition). Because the definitions in section 29(1) apply “in” Part 1 of the 1960 Act it is therefore not certain whether the modifications made by the 1968 Act have been attracted.
Section 1314 resolves these doubts by reproducing only section 13(1) of the 1968 Act. Consequently it does not matter whether a twin-unit caravan can be lawfully moved on a highway when assembled. For the purposes of Schedule A (rewritten as property income in this Act) it is also immaterial if the twin-unit caravan exceeds the dimensions specified in section 13(2) of the 1968 Act: property income treatment seems more appropriate the bigger the structure.
This change extends the meaning of “caravan” which may result in a more beneficial tax treatment.
The changes are in taxpayers’ favour in principle and may benefit some in practice. But the numbers affected and the amounts involved are likely to be small.