Fri, 10th Sep 2010
Malvern Business
Whitehall quiz for holiday let owners
2:53pm Friday 30th July 2010
THE Government is seeking the views of holiday let businesses across Worcestershire and Herefordshire on proposals to change the special tax rules for furnished holiday homes that are let out commercially during the year.
Furnished holiday lettings currently benefit from various tax reliefs, normally only available to people carrying on a trade, such as the ability to claim allowances on items such as furniture, kitchen fittings and household appliances used in the property.
It is estimated there are presently 700 such properties in Herefordshire and 130 in Worcestershire.
However, a joint HM Treasury and HM Revenue and Customs consultation document contains proposals for change.
These include increasing the minimum period that a qualifying property must be let out for in a year from 10 weeks to 15 weeks, and increasing the minimum period that a qualifying property must be available for letting in a year from 20 weeks to 30 weeks.
There are also plans to restrict the use of loss relief so losses can only be set against future income of the same business and not, as now, against other income.
Business properties in the European Economic Area will also be ensured they are eligible to be treated as qualifying furnished holiday lettings in the same way as businesses with properties in the UK.
As part of the consultation document, HMRC is keen to hear from furnished holiday lettings businesses.
Launching the consultation, David Gauke, Exchequer Secretary to the Treasury, said: “Furnished holiday lettings play a vital role in any tourism industry and the UK is no different.
“These proposals balance the need to make sure the rules are affordable, provide support to genuine commercial businesses, and meet our obligations under EU law.
“We really want to hear the views of local people who have an interest in these issues.
“The best legislation comes about through good consultation so we would value any contributions, however large or small.”
Interested parties are asked to submit their views by e-mail to holiday-lettings-consultation@hmtreasury.gsi.gov.uk.
The deadline for responses is Friday, October 22.
