OPERATORS of furnished holiday homes in North and East Yorkshire are being asked to give their views on plans to withdraw tax breaks from the industry.

The new coalition Government reversed Labour’s Furnished Holiday Lettings rules announced in the 2009 Budget, and announced a public consultation would be held over the summer.

Under current rules, to qualify for tax allowances on items such as furniture, kitchen fittings and household appliances, the property must be in the UK and be available for holiday letting on a commercial basis for at least 20 weeks during the tax year. It must actually be let for at least ten weeks, with individual longer-term occupation, periods of more than 31 consecutive days, should not account for more than 155 days.

A joint Treasury and HM Revenue & Customs consultation document proposes to increase the minimum period that a property is available for letting to 30 weeks, and the time it must actually be let out to 15 weeks.

It also proposes to restrict the use of loss relief and extend the tax relief to businesses with properties in the European Economic Area. The Exchequer Secretary to the Treasury, David Gauke, said: “These proposals balance the need to make sure the rules are affordable, provide support to genuine commercial businesses, and meet our obligations under EU law.”

Interested parties are asked to submit their views by email to holiday-lettings-consultation@hmtreasury.gsi.gov.uk by October 22.