22/05/2009 - Tourism chiefs angry over tax plan
The tourism sector could lose millions of pounds a year under plans by the Government to scrap tax incentives on furnished holiday lets, according to industry leaders.
The plan to repeal furnished holiday lettings rules - which allow owners of holiday lets to enjoy the same tax advantages as those running other tourism businesses - is thought to be aimed at closing a loophole that gives second home owners tax benefits by letting their properties for a short period.
But the move announced by Chancellor Alistair Darling in last month's Budget has been condemned by the Combined Association of Holiday Home Agencies, which claims it could force many legitimate businesses to close.
The lobby group fears it could cost the economy "tens of millions of pounds a year" and has urged the Government to consult with industry leaders before changes take effect from April 6, 2010.
According to the latest figures, the UK's self-catering sector generated nearly £2 billion in tourism spend in 2007, rising to £3 billion if self-catering holiday camps and static caravans are included.
Copyright © Press Association 2009
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