Council Tax on Park Homes: What You Actually Pay

If you're new to park home living, the council tax question catches people out. A caravan sounds like it should be exempt from the charges a house pays. A park home on a residential site isn't treated that way.

Do park homes pay council tax?

Yes, if the site is licensed for residential use and the home is your main residence. Councils call this a protected site, the same status covered in our guide to the difference between a residential park and a holiday park. A static caravan on a holiday-only site works differently. Shelter England confirms you don't pay council tax if the home is a holiday home rather than your main address, though the site itself may still be rated separately as a business.

How the council tax band gets set

The Valuation Office Agency assesses each park home individually, under the same Local Government Finance Act rules that apply to bricks-and-mortar houses. Practice Note 7 in the VOA's Council Tax Manual explains how it values caravan pitches and moorings once a home becomes someone's sole or main residence.

Most park homes land in Band A, the lowest band, reflecting their lower rebuild value against a house of comparable size. Some sit in Band B instead, and residents have pointed out that near-identical homes on different parks can end up in different bands with no official rationale for the gap. If your band looks wrong, query it directly with the VOA. The site owner has no say in the figure.

Council tax and your pitch fee are separate bills

Council tax goes to the local authority. The pitch fee goes to the site owner, covering rent on the plot and upkeep of shared areas like roads and communal grounds. Our guide to pitch fee reviews covers how that figure gets set each year. The two bills move independently. A pitch fee increase has no bearing on your council tax band, and a change to your council tax has no bearing on what the site owner can charge for the pitch.

Cutting the bill

A single occupant qualifies for the standard 25% single-person discount, same as any other council tax payer. If your income is low, ask your local authority about a council tax reduction. Check this annually, since eligibility depends on your circumstances at the time, not a one-off assessment when you move in. None of this depends on living in a park home specifically. The rules apply exactly as they would to a house.

FAQs

Do I pay council tax on a holiday caravan I only visit a few weeks a year?
No. Council tax applies to your main residence. A caravan on a holiday site, used only occasionally, isn't liable in the same way, though the site itself may be rated differently as a business.

Can two park homes on the same site have different council tax bands?
 Yes. Bands get assessed against each home's individual value, so two homes of a different age or size on the same park can sit in different bands even if the pitch fees are identical.

Who do I actually pay, the council or the site owner? 
The council, directly, the same as any homeowner. The site owner only collects the pitch fee, a separate charge for renting the plot and using shared facilities.