§ Mr. Crouchasked the Chancellor of the Exchequer if he will list the circumstances under which, for tax purposes, a caravan counts as a dwelling-house.
§ Mr. Patrick Jenkin: Under Section 57 of the Income and Corporation Taxes Act, 1970, relief may be claimed for interest on loans used for purposes which include the purchase or improvement both of dwelling-houses and of certain caravans. Income derived from letting 215W sites for caravans or accommodation in caravans is chargeable to tax.
§ Mr. Crouchasked the Chancellor of the Exchequer if he will seek to amend the definition of a dwelling-house under the Finance Acts so that caravans may be exempt on sale from Capital Gains Tax.
Mr. PatrickJenkin : In so far as caravans are wasting chattels with a predictable life of less than 50 years, gains accruing on their disposal are already exempt from capital gains tax.