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Taxation: Holiday Accommodation

Volume 502: debated on Monday 14 December 2009

To ask the Chancellor of the Exchequer what assessment he has made of the potential effect of the repeal of the furnished holiday lettings rules on farmers who have diversified into tourism and related businesses. (306005)

[holding answer 10 December 2009]: In 2007-08 approximately 60,000 individuals declared income from Furnished Holiday Lettings to HM Revenue and Customs (HMRC), approximately 2,500 of whom also declared income from farming. After the Furnished Holiday Lettings rules are withdrawn, these businesses will still be able to claim various tax reliefs including loss relief, a deduction for business expenses, and an allowance for capital expenditure. Therefore the impact on continuing, viable businesses is expected to be limited.

HMRC published an impact assessment on 9 December 2009, available at:

www.hmrc.gov.uk/pbr2009/furnished-holiday-ia-3760.pdf