The Cornish holiday let industry has welcomed the Government’s draft legislation on tax changes to Furnished Holiday Lettings (FHL).
The Government yesterday published its draft clauses for its Finance Bill 2011, including its proposed revisions on FHL.
The previous Government had planned to end the tax relief, but yesterday Treasury Minister David Gauke confirmed that instead he is changing qualification by increasing the number of days accommodation must be rented out for from 70 to 105 a year.
“I am proud that our industry came together and rallied the troops”
And anyone who owns a number of FHLs will be able to average out the days they are let for across their properties.
Gauke said: “The whole scheme was going to be scrapped under the Labour Government.
“In the majority of cases most furnished holiday lets are already meeting the 105 day requirement. In most cases it should not be a major problem.”
Classic Cottages MD Simon Tregoning welcomed the news and paid tribute to the holiday industry’s campaigning on the issue. He said: “We are somewhat surprised that, this time, the Government has got it right and has listened and acted in the best interests of the industry – this is unusual and doesn’t normally happen.
“It clearly demonstrates that during discussions, both preceding and after the election, and throughout the period of consultation the tourism sector worked well together, taking a mature approach and responding with a single voice to deliver a clear message to the Government. I am proud that our industry came together and rallied the troops and I am sure that this is why the Government sat up and took note on this occasion.”