MP REJECTS CLAIMS FURNISHED HOLIDAY LETTING RULES GIVE AN UNFAIR ADVANTAGE
August 3, 2009 3:10 PM
Nick Harvey says: "I have been campaigning against the abolition of the tax breaks provided by the Furnish Holiday Lettings rules, for fear of the impact it will have on self catering holiday homes. I reject Government claims that the rules are unfair and distort the tax system. My worry is that small businesses will be penalised."
Treasury secretary Stephen Timms argues: "The FHL rules provide an anomalous tax treatment and are seen as discriminatory and unfair to other types of landlord. In particular, some residential landlords provide similar services and undertake similar activities to some FHL landlords but are unable to benefit from the preferential tax treatment available.
"Landlords with income from furnished accommodation that is situated elsewhere in the European Economic Area (EEA) did not qualify for the special treatment available to landlords with furnished holiday accommodation in the UK. This difference may not be complaint with European law. Therefore the Government had to choose whether to extend the preferential tax treatment to those who invest in European FHL properties, or withdraw the FHL rules."
Nick adds, "The Government have simply ducked the issue as to whether the FHL are European compliant - either they are or they are not. To my mind the Government is trying to close a tax loop hole and lump self-catering in with the trading activities of hotels and B&Bs which provide additional services such as food, drink and entertainment.
"The cottage holiday agency, Holiday Cottages Group and the Tourism Alliance also remain far from convinced by the Government's arguments."
What would you like to do next?
-
Subscribe for updates
Follow the party's activity on...
- Twitter:
- Liberal Democrats
- Facebook:
- Liberal Democrats
- YouTube:
- Liberal Democrats