Legislation that will have an impact on Scottish tourism

Dec 10 2009 by Margaret Shaw, Hamilton Advertiser

THIS week, while attention is being focused on the Pre-Budget Report, the Treasury are putting into effect legislation to come into force in April next year that will have a major impact on the Scottish tourism sector.

The Treasury are going ahead with plans to eliminate tax breaks for people who practice the business of renting out furnished holiday homes.

The Furnished Holiday Letting Scheme at the moment considers people who rent out holiday properties in Britain as traders and not as investors, as long as the homes are available for a minimum of 140 days per year, rented out for a minimum of 70 days per year and are fully furnished.

This current tax breaks include a number of benefits, including counter-balancing the expenses of furniture and fittings against revenues, and acquiring inheritance tax benefits.

Under the new plan, holiday rental home owners would be considered as investors and lose all the tax privileges.

This levy is greedy and ill-conceived and will certainly contribute to discouraging entrepreneurs, shrinking the availability of self-catering lodging, as well as slowing business development and costing jobs.

And it comes precisely at a time when the industry needs all the support it can get in order to escape economic hardship and stimulate employment.

Alex Orr, letter sent by e-mail.