8th April 2010

Furnished Holiday Lettings Update

The government announce that it is to set aside a repeal of the Furnished Holiday Lettings rules until after the general election.

The repeal, ending tax relief on holiday homes was announced in the budget of April 2009, would have had serious harmful consequences for the domestic tourism sector leading to a loss of over £200 million and 4,500 jobs, the association claimed.
 
It was due to be included in the Finance Bill but has been given a reprieve following pressure from the Conservatives, ABTA, the Tourism Alliance and the Holiday Cottages Group.
 
A review of the repeal was one the key demands in ABTA's Travel Manifesto and follows on from representations made by the association to government earlier in the year.
 
ABTA chief executive Mark Tanzer said: "The repeal of the FHL rules would have had an extremely damaging impact on domestic tourism and many of our members’ businesses and we welcome the Government’s sensible decision to set aside the proposed repeal for the time being.
 
"We will call on the new government in office after 6 May to listen to industry concerns and reform FHLs in a way that both achieves government objectives as well as supporting domestic tourism."
 
Tourism Alliance chairman Ken Robinson said: “The decision not to repeal the FHL rules move is good for the UK tourism industry.
 
“The Conservatives backed our case, after the Treasury rejected the minister's previous efforts to stop their ill-considered change.
 
“This highlights the extent to which the mandatory Economic Impact Assessment process had been abused to push through poor legislation.
 
“This must change if UK businesses are to provide the economic recovery the UK needs.”

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