Tories pledge to scrap holiday lets tax changes

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Monday, March 15, 2010
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This is Exeter

PLANS have been unveiled by the Tories to reverse a tax change that it has been warned will hit holiday-home businesses in Devon.

It came as the Conservatives pledged to take "concrete action" to support tourism if elected into government.

The party said it would take action to "undo the damage" of plans to abolish tax relief on furnished holiday lets.

Last year's mini Budget unveiled by Mr Darling said legislation would be introduced to pave the way for the rule change to come into effect from April. Changing the rules on furnished holiday lets has been branded by critics as a "stealth tax".

Opponents warn the tax change could force owners to stop letting out their second homes, hitting the tourist trade and costing thousands of jobs. It is feared that be rural areas will be among the worst hit.

The Treasury hopes to raise an extra £20m a year by abolishing tax breaks for those second-home owners.

Now the Conservatives have pledged to reverse the abolition of the tax break.

They says they have received expert tax and legal advice showing they can achieve this without costing the taxpayer.

Steps include changing the thresholds for furnished holiday let relief and making other financial changes.

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