Buy a Static Caravan: Should You Budget for Council Tax?
Before you commit to buying a new static caravan, you need to understand all of the costs involved, but does this include council tax?
Whether you’re investing in a small and compact one bedroom model, or a caravan with enough space for the whole family and multiple friends, you need to know about council tax.
You don’t want to buy a static caravan and then realise you need to pay council tax, which you’ve not budgeted for.

Do You Pay Council Tax on Static Caravans and Holiday Homes?
Static caravans have become an increasingly popular choice for holidays, second homes and even permanent living.
Whether you have to pay council tax when you buy a caravan for sale depends on how and where you plan to use it.
Static Caravans for Holiday Use
Most static caravans are purchased for use as holiday homes and placed on dedicated holiday parks, and there is a thriving market for private static caravans for sale.
These caravans are often set in picturesque holiday park locations in places like North Wales, Devon and the Scottish Highlands, giving you somewhere to head to every time you want to get away.
If you’re buying a caravan solely for holiday purposes, then you don’t usually have to pay council tax.
Instead, you’ll normally pay site or pitch fees to the holiday park.
These typically include a contribution towards local business rates, which the site owner pays to the council.
Will You Have to Pay Council Tax on a Holiday Home?
Council tax liability depends on the intended usage of the caravan, whether it’s for occasional holidays or more frequent stays, but holiday homes don’t usually incur council tax.
Of course, it’s important to do your research before you commit to buying a new static caravan and determine your personal council tax status.
Static Caravans as a Permanent Residence
If your static caravan is your main or only home – for example, if you live in it full-time on a residential site – then things are different.
If you buy a static caravan for sale and plan to live in it year-round, your caravan is classed as a dwelling.
This means you will be liable for council tax, just like you would in a traditional house or flat.
The amount you pay depends on the council tax band assigned to your caravan pitch and the legal status of your static caravan or holiday home, so be sure to check the necessary details.
Not All Holiday Parks Allow Full-Time Living on Static Caravans
It’s important to note that not all caravan parks allow year-round residential use.
Holiday parks typically have restrictions, while residential parks are licensed for permanent living.

New Static Caravans for Sale: Do You Have to Pay Business Rates?
If you’re buying a static caravan for sale as part of a rental business – for example, if you let it out to holidaymakers and generate an income – then it might fall under business rates rather than council tax, regardless of whether it’s brand new or pre-owned.
You might still pay site fees, but your caravan could be classified as a business property.
The process of letting out a static caravan typically involves registering your caravan for business use, which can affect how business rates are applied.
In some cases, you may qualify for small business rate relief if your rental income is below a certain threshold.
Buying a New Static Caravan for Sale to Use as a Business
There are also potential benefits to letting out your static caravan as a business, such as generating additional income or being eligible for certain tax reliefs.
It’s important to do your research before buying a static caravan for sale, to ensure you know exactly what you’re expected to pay, when and why.
Paying Council Tax on a Holiday Home: Key Things to Remember
- If you’re buying a static caravan for sale and only intend to use it for holidays, there’s no council tax to pay. Instead, you pay site fees, which usually cover business rates for the holiday park.
- If you’re buying a holiday home to live in full-time, you’ll likely pay council tax as your static caravan will be treated as your main home.
- If you’re running a static caravan as a business, business rates may apply instead of council tax.
Avoid Making Council Tax Mistakes on Your UK Holiday Home
Whether or not you pay council tax on a static caravan depends entirely on how it’s used.
If you’re buying one for weekend getaways or summer holidays, you won’t have to worry about council tax.
But, if you’re planning to live in it permanently or use it as a rental business, it’s important to understand your obligations.
If in doubt, it’s always best to check before making your purchase.
That way, you’ll know exactly what costs to expect beyond the purchase price and site fees.
Thinking About Buying a Static Caravan for Sale?
There’s a wide range of static caravans, lodges, pre owned holiday homes to choose from, including popular brands like Swift, Atlas and ABI.
You can choose from a variety of models and navigate our available stock to find the perfect fit for your needs.
Before you commit, it’s a good idea to visit holiday parks in popular locations such as North Wales and Cornwall to see the available caravans and lodges in person.
Start your static caravan ownership journey today and get in touch with our team for expert guidance.
