18th March 2010

Update on Furnished Holiday Letting Rules from Visit Britain

The following details have come via Visit Britain

Both VisitBritain and VisitEngland are very concerned that the proposed changes to the FHL tax rules will have a detrimental effect on the health of the self-catering sector in the UK.

Since the publication of the Budget statement last April, VisitBritain's Policy Unit has been meeting and talking to a range of individuals and groups, including self-catering operators, three trade associations, the Tourism Alliance, the Federation of Small Businesses, concerned parliamentarians and tourism colleagues. Their input has resulted in the preparation of a detailed response to ensure that the impact of the proposed changes to the FHL are fully understood by Government. The detailed response to the consultation was lodged with the HMRC and sent to the Secretary of State at the Department of Culture, Media and Sport.

VisitBritain has proposed changes to the eligibility criteria, which should reward successful businesses, set a challenging threshold for ‘hobby landlords’ who use the reliefs as a subsidy to their personal second homes, and exclude many landlords of overseas property where the letting season is very short. VisitBritain believes this proposal should be tax neutral, and has called upon the government to introduce the proposed new regime for a trial period, to allow this proposition to be properly tested.

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