Insurance and tax basics for letting a static caravan

Insurance: tell your insurer you're letting

Most static caravan owners already insure their van, but a standard holiday-home policy may not cover you once paying guests stay. Before you take bookings:

• Tell your insurer that you plan to let the caravan to paying guests.
• Ask for letting (hire) cover that covers paying guests, including public liability.
• Check what's covered for guest damage, theft, and accidental damage, and any excess.
• Ask about any conditions, such as safety certificates, key arrangements or how many weeks you can let.
• Check whether your park requires particular cover or proof of insurance.

Our Owner Terms ask VanHols owners to hold appropriate holiday-let or sub-letting insurance that covers letting to paying guests, including public liability.

Is caravan letting income taxable?

Yes, it can be. HMRC's Property Income Manual lists income from caravans that aren't moved around different locations as property income (HMRC PIM1051). So for most owners letting a static caravan on a park, the income from guests is treated like other rental income. If you're not sure how it applies to you, ask HMRC or an accountant.

The £1,000 property allowance

If you personally own the caravan, the first £1,000 of property income each tax year is tax-free. This is the property allowance (gov.uk: tax-free allowances on property and trading income).

• If your gross property income is £1,000 or less in a tax year, you don't usually need to tell HMRC.
• If it's more than £1,000, you can either deduct the £1,000 allowance or deduct your actual allowable expenses, not both. If your expenses are more than £1,000, claiming expenses may work out better.
• If you own the caravan jointly, each owner can use the allowance against their share of the income.
• You must keep records of your income.

When to tell HMRC

According to gov.uk's guidance on paying tax on rental income:

• Contact HMRC if your income from property rental is more than £1,000 a year, up to £2,500.
• You must report it on a Self Assessment tax return if it's more than £2,500 after allowable expenses, or £10,000 before allowable expenses.
• If you don't usually send a tax return, you need to register by 5 October following the tax year you had the income.

Allowable expenses

If you claim expenses instead of the allowance, gov.uk lists examples of allowable expenses for residential lettings, such as letting agents' fees, accountants' fees, insurance, maintenance and repairs (but not improvements), utility bills, services you pay for like cleaning, and other direct costs of letting like advertising. For a caravan, think pitch fees, cleaning, laundry, gas safety checks and repairs, but check what applies to you on gov.uk. Buying the caravan, or improving it beyond repairs, counts as capital expenditure and isn't an allowable expense.

Only the part of your costs that relates to letting counts. If you also use the van yourself, you'll need to split costs fairly between your own use and letting.

Furnished holiday lettings: the rules ended in April 2025

There used to be a special tax regime for furnished holiday lettings (FHL), with its own rules and reliefs. Gov.uk says those rules ended on 6 April 2025 for Income Tax and Capital Gains Tax (and 1 April 2025 for Corporation Tax). From then, holiday lets are taxed under the normal property income rules. If you let before April 2025 and filed under the FHL rules, check the gov.uk guidance on what still applies to earlier tax years.

Keep simple records

Whatever your income, keep a record of each booking and payment and each cost, with receipts and statements. A spreadsheet is fine. On VanHols, you receive your nightly price plus your cleaning fee for each stay, paid to your bank about 24 hours after check-in, which makes bookings easy to match to your bank statement. You're responsible for declaring your letting income and paying any tax due.

Quick questions

More owner guides

• How to rent out your static caravan in the UK
• Park rules on letting your static caravan
• How to price your static caravan for holiday lets
• Getting your static caravan ready for guests
• Static caravan letting FAQ