General Election rings in a £4,000 tax break for UK holiday home owners
General Election rings in a £4,000 tax break for UK holiday home ownersA tax break for British holiday home owners, which Labour had planned to revoke, has been axed in the pre-election wash-up with the Conservative party ahead of parliament dissolving on Monday.
It is thought that removing the tax relief would have cost holiday home owners an average of £4,000 a year.
According to The Daily Telegraph, Labour were forced to scrap the repeal of these advantageous tax rules – one of three planned tax changes - so that the Finance Act could sanction the Chancellor's last budget.
Owners of furnished holiday lettings are currently able to offset any costs they incur, via the taxman, against other income, such as employment income, therefore reducing their overall tax bill.
It is thought the changes would have hit more than 120,000 self-catering holiday businesses. The Tories had feared the impact on the British tourism industry could be profound and far reaching.
This story was brought to you by holidaylettings
.co.uk – advertising holiday homes to rent direct from owners & letting agents.
8 April 2010 Print this article