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RURAL watchdogs say they are outraged and appalled by the proposed removal of trading status for furnished holiday lettings.
The Country Land and Business Association (CLA) claims the 'covert attack on tourism' could cost the industry millions of pounds.
The CLA says that from 2010 the tax privileges intended to encourage landlords to provide furnished holiday lodgings will be ditched.
CLA chief tax adviser Adrian Baird said: “This destroys a political consensus that has existed since 1983 that it was right to encourage self-contained property to be provided to UK holidaymakers.
“You would have expected such a major tax change to have deserved an explanation in Mr Darling’s Budget speech.”
CLA regional director Caroline Bedell said: “It is utter madness that the axing of the trading status for furnished holiday lettings is being planned at a time of economic uncertainty. This could spell bad news for small businesses that rely on tourism within the rural Midlands.”
Favourable tax rules currently apply to furnished holiday accommodation let as lodgings for short periods. To qualify for this treatment, the property must be let for 10 weeks of the year, available for letting for 20 weeks of the year and not let for more than 31 days to the same person.
The rules were introduced in 1983 to boost the provision of accommodation and tourism in the UK.
Copyright Ashbourne News Online 2009
