Cornish accountant and business adviser Winter Rule has lashed out at the Government’s decision to scrap tax benefits currently available to furnished holiday lets, following yesterday’s Pre Budget Report.
It is estimated the move will lose the holiday cottage industry alone £200 million a year and cause eight out of ten self-catering holiday properties to go under.
Cornwall and the South West have the highest number of holiday lets in the country.
John Endacott, a tax-partner with Winter Rule and an acknowledged national expert on tourism taxation issues said: “We canvassed industry opinion about these changes throughout the summer and met with Treasury and Revenue officials to present compelling evidence gathered from businesses across the South West and beyond about the likely impact these proposals would have.
“We were promised detailed guidance for property owners but what’s been produced is useless and avoids all the difficult questions. The Government has ignored the practical issues that holiday letting businesses are going to face and they simply don’t have the data to arrive at a rational policy. Instead they have published a dodgy impact assessment of Iraq WMD proportions.
“Earlier this week 116 cross-party MPs signed a Commons motion for these changes to be reviewed as soon as possible and yet the Government is still looking to railroad them through. Following the PBR my advice to those affected is clear – lobby your MP.”