Furnished Holiday Lettings Rules Update

From Tourism Alliance. 

Work on finding a solution to the proposed repeal of the Furnished Holiday Lettings Rules continues with the development of a paper on the financial implications for self-catering operators if the tax status of these tourism businesses is changed.

The paper shows that, while the financial implications of changes to the tax treatment of self-catering properties are difficult to determine due to the specific circumstances of each business, there can be little doubt that businesses will be severely disadvantaged as a result.

This has two major impacts upon the sector. First, the changes in tax treatment will reduce entry into this sector of the industry by significantly reducing the viability of developing a self-catering property. Second, changing from 100% relief on capital expenditure to the proposed 10% wear and tear allowance means that the quality and quantity of the fittings provided will be reduced and there will be a lower level of maintenance. This, in turn, will adversely affect the quality of the tourism product and the experience that customers receive.

The assessment has been used as part of continued meetings and briefings with politicians.

South West Tourism update: The Government announced the draft revised legislation and accompanying guidance as part of the Pre-Budget Report on 9^th December 2009. However, consultation with the Treasury continues and further meetings are set to continue as momentum builds against this legislation, with over 130 MP'S signing the Early Day Motion against this repeal.

For a copy of the Financial Impact Assessment, click here.

Date added: Monday 21st December 2009
Latest updated: Wednesday 28th July 2010