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Taxation: Holiday Accommodation

Volume 502: debated on Wednesday 16 December 2009

To ask the Chancellor of the Exchequer what representations his Department and HM Revenue and Customs have received from operators of long-term residential lets (a) on the equity of the system of furnished holiday lettings relief extended to operators of self-catering holiday properties and (b) seeking the abolition of such relief. (307292)

I refer the hon. Gentleman to the answer I gave on 20 October 2009, Official Report, column 1413W, to the hon. Member for Montgomeryshire (Lembit Öpik).

To ask the Chancellor of the Exchequer what steps HM Revenue and Customs took to determine the range of services characteristically offered by providers of self-contained accommodation prior to reaching the conclusion that the services and facilities provided by self-catering operators in receipt of furnished holiday lettings relief are not appropriate to secure classification as a trade. (307294)

HM Revenue and Customs' guidance explains the difference between trade and property business, based on the legislation and the courts1 interpretation of it. In the past the courts have decided that income from furnished holiday letting is not normally a trade.