Friday, 24 April 2009
Holiday home owners are Budget losers
PROPOSALS in the Budget, if enacted, will unfairly disadvantage self-catering holiday home operators across the UK, claims a leading Ayrshire chartered accountant.
Andrew Sinclair (pictured above) is a partner at Ayr-based Sinclair Scott Chartered Accountants. He points out that businesses which let out furnished holiday properties currently enjoy the same treatment as a normal trade for taxation purposes. Loss relief, business assets, rollover, business property relief, capital expenditure and earnings rules are the same as for any other small business.
However, due to a suggestion that the current legislation may not be compliant with European Law, the proposal in the Budget is to end rules for furnished holiday lets from 2010. These businesses will be treated as if they are operating ordinary property rentals, which will have a significant negative financial impact on the sector as normal business trading benefits will no longer be available.
Andrew Sinclair, who is also a member of the Association of Scotland’s Self-Caterers, says: “This is fundamentally unfair, as many furnished holiday lets are run very much as ‘hands-on’ businesses, and in that respect do not differ from bed and breakfast or hotel accommodation.”
David Smythe, chairman of the Association of Scotland’s Self-Caterers (ASSC), added: “In a time when the Government should be doing more to promote and assist the indigenous tourism industry, these changes are extremely unwelcome. This proposal was not consulted on, and seems to be applying a sledgehammer to crack a nut. We will be lobbying hard to have this proposed change amended.”
Andrew Sinclair has written a paper about the Budget changes affecting furnished holiday property owners. Copies can be obtained from Sinclair Scott Chartered Accountants, telephone 01292 288999 or e-mail firstname.lastname@example.org
For more information contact
Telephone: 01738 840239
Sinclair Scott Chartered Accountants
3 Wellington Square
Ayr KA7 1EN
Contact: Andrew Sinclair
Tel: 01292 288999
Fax: 01292 272150
The Association of Scotland’s Self-Caterers was formed 30 years ago to promote quality in self-catering. It is the only trade association representing the sector in Scotland.
Membership stands at around 6000 self-catering businesses, or 3000 self-catering properties
ASSC is represented on VisitScotland Trade Overseeing Committee on Quality Standards; Scottish Tourism Forum; Federation of National Self-Catering Organisations; and the Board of the Sector Skills Council, Tourism Framework for Change monitoring, Tourism Intelligence Scotland and other groups. It represents the interests of its members at national level through representation to these bodies and others such as the Enterprise network, the Scottish Government, and the European Commission.
ASSC promotes its Quality Assured members on its website www.embracescotland.co.uk and in publications.
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