Caravan owners exploit tax loophole that could cost councils millions in rates

IT is not known for being a thorn in the side of the public sector, but the usually sedate world of caravanning is about to cause the Scottish economy one enormous headache.

Thanks to a little-known tax loophole, the caravanning community is set to cost Scotland's cash-strapped councils millions of pounds a year in revenue.

The loophole is simple: each caravan in a caravan park can apply for rates relief, which in turn cuts the overall bill for the park considerably. Few knew about the law until the owners of caravans in the Rosneath Castle Caravan Park, near Helensburgh, first began using it. The 300 caravan owners at the park have now bombarded the Clydebank business ratings assessors' office with letters and phone calls, each seeking to save a few hundred pounds per year in council rates.

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