Holiday let campaign hits the road

The campaign against controversial Government plans to change the tax rules on furnished holiday lets, which could cost the Westcountry economy tens of millions of pounds, is stepping up a gear with the launch of an information roadshow.

Chartered accountants and business advisers Winter Rule, who specialise in tourism and are spearheading the campaign, have teamed up with the holiday letting industry to run a series of seminars in Cornwall and Devon.

The campaign is attracting interest from across the UK and has already won the support of South West Tourism and the Combined Association of Holiday Home Agencies (CAHHA), which has some 5,500 holiday let properties between its members.

The seminars, aimed at people in the holiday letting industry, will outline the potential impact of the changes on the sector, what steps businesses should consider taking, and how they can get behind the campaign.

Chancellor Alistair Darling wants to repeal the so-called Furnished Holiday Lettings (FHL) rules from April of next year. Introduced in 1984, they allow the owners of holiday lets to enjoy the same tax advantages as those running other tourism businesses.

The fear is that removing these allowances will impact on a wide range of businesses, damage investment, reduce the amount of accommodation on offer and cost the Westcountry tourism economy tens of millions of pounds a year.

John Endacott, tax partner at Winter Rule, said: “We’ve had a fantastic response to the campaign so far and have been contacted by owners, advisers and agents across England, Scotland and Wales. There is real concern about the impact of these proposals so the roadshow is an opportunity for local businesses to ask questions, share their concerns and help us gather the necessary evidence to lobby Ministers.”

Simon Tregonning, managing director of Classic Cottages, is involved in the seminar programme. His company manages about 700 holiday properties across Cornwall, Devon, Dorset and Somerset and is a member of CAHHA.

He said: “The Government’s plans are ill-conceived and threaten a key part of the South West economy by impacting on hard-working businesses. We want proper consultation on these proposals so that Ministers appreciate the depth of feeling and concern, and think again.”

The South West has some 62,000 furnished holiday let properties which accounted for 16% of all visitor spend – or £574 million – in the region last year, according to the latest United Kingdom Tourism Survey.

Self-catering visitors also stay longer and spend more – 6.3 nights on average spending £335 per person per trip, compared with 4.3 nights and £188 per person for other trips.

The Government has maintained that the changes are necessary in order to bring the UK in line with European legislation.

The six free Winter Rule seminars will be held on July 1, 7 and 8, and there will be morning and evening sessions. They will last about 90 minutes and include ample time for questions.

The dates and venues are as follows:

July 1: The Pavilion, Royal Cornwall Showground, near Wadebridge, starting at 10.15am; Lostwithiel Golf & Country Club starting at 5.15pm.

July 7: The Penventon Hotel, Redruth, starting at 10.15am; the Combined Universities in Cornwall, Tremough Campus near Penryn, starting at 5.15pm.

July 8: The Grand Hotel, Torquay, starting at 10.15am; Sandy Park, Exeter, starting at 5.15pm.

Anyone interested in attending the seminars should contact Winter Rule by emailing taxcampaign@winterrule.co.uk