Pendle MP, Gordon Prentice, is backing Holiday Cottages in its bid for a re-think on new tax rules for furnished property lettings. The company is a big local employer based in Earby.

In this year’s budget Chancellor Alistair Darling  announced changes to tax rules imposing a greater liability from April next year on property owners when running a holiday letting business.

The MP said: “ I am in touch with the Chancellor and am  supporting a Commons motion for a review of this policy change. Businesses should have the chance to discuss any unintended consequences. The concern is that many holiday property owners will sell their properties before April 2010 which could mean fewer visitors to the countryside in places like Pendle. This would then have a knock-on effect on the rural economy.”

Note to Editors:
Early Day Motion 1730 reads:

FURNISHED HOLIDAY LETTINGS RULES23.06.2009
Anderson, Janet
That this House notes that the repeal of Furnished Holiday Lettings rules announced in the Budget will have negative and unintended consequences for providers of holiday lettings; believes that the negative impact of the repeal will lead to a reduction in the supply of self-catering accommodation in particular, resulting in a significant loss of jobs and damage to rural and seaside economies; further notes with concern the lack of any industry consultation on the repeal; and calls upon the Government to conduct a full consultation and review of this policy change as soon as possible to ensure all affected parties have the opportunity to voice their concerns and to promote an understanding of and mitigate against any unintended consequences on tourism, especially in rural and seaside areas.