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Holiday Homes

Volume 496: debated on Wednesday 16 September 2009

To ask the Chancellor of the Exchequer (1) what estimate he has made of the number of holiday lets in (a) North Yorkshire and (b) England which will be affected by the decision to reclassify income from holiday lets as unearned income; (288114)

(2) what the revenue to the Exchequer from taxation on holiday lets was in (a) North Yorkshire and (b) England in (i) 2005, (ii) 2006, (iii) 2007 and (iv) 2008.

The estimated taxable profit for those who made a net profit on furnished holiday lettings was £90 million, which would be subject to taxation at the marginal rate of the taxpayer. This estimate relates to 2006-07 which is the latest year for which full data is available; estimates for the preceding year are thought to be similar. An impact assessment for the withdrawal of the furnished holiday lets concession will be published at the pre-Budget report, alongside the draft regulations. HM Revenue and Customs do not have information on the number or location of furnished holiday lettings.