John Endacott, tax partner at Winter Rule in Truro who has lobbied the coalition Government and Treasury officials about the proposed changes to Furnished Holiday Let rules, said: “I am pleased that the new government has listened to our representations on the repeal of the furnished holiday letting rules.
They have taken on board our concerns and have agreed that no changes will be introduced until April 2011 to give time for further consultation.
The outcome is likely to be a slightly less generous tax regime but one that should not be too damaging to the South West economy. The government is looking to increase the number of days for which a property must be available and let, as well as restricting tax relief for losses against other income.
This will concern owners in very seasonal locations and new-start businesses where such targets may be difficult to achieve because year-round letting is much harder, so we will continue to press that as an issue.
We look forward to consulting with Treasury officials and putting forward arguments on behalf of this important part of the region’s tourism economy.”
Simon Tregoning, managing director of Classic Cottages, which markets around 700 high-quality holiday properties across the South West, welcomed the Chancellor’s decision to retain the current rules but said consultation was now crucial on any future changes: “This is great news for tourism across the Westcountry and personally I’m pleased they’re back, however, I’m calling on the Government to fully consult the industry if the rules are to be adjusted in any way. I would like George Osborne and his team to fulfil David Cameron’s explicit promise, made in Cornwall five days before the election, to consult fully before making any changes on FHL.”
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