MSP BACKS INDUSTRY CALLS ON DAMAGING NEW TAX RELIEF RULES (Jim Hume)

MSP BACKS INDUSTRY CALLS ON DAMAGING NEW TAX RELIEF RULES

December 7, 2009 2:28 PM

Jim Hume, Liberal Democrat MSP for the South of Scotland, has today backed tourism industry calls for the Chancellor to halt plans to end tax relief for tourism based self catering letting enterprises.

In a letter to the Chancellor, the MSP has expressed concern that the measures contained in next week's pre budget report will be damaging to the South of Scotland's tourism sector and has called on Alistair Darling to re-think his plans.

Jim Hume said:

"By getting rid of this tax relief, the people that will lose out are the small lettings businesses, and it's very likely to have major effect upon the rural tourism sector in the South of Scotland.

"The changes have been estimated to cost an average of £4,000 in tax for lettings businesses and this is bound to affect smaller businesses even more.

"This is going to impact heavily on rural areas that rely on tourism.

"It goes against the grain of promoting rural tourism. And with the economic climate as it is, the UK Government should be encouraging and supporting these vitally important small and medium enterprises, hitting them where it hurts.

"As well as the direct impact, knock on effects will doubtless be felt by other local industries such as shops, tourist attractions, pubs and restaurants for example.

"People who have taken out grants or loans for property improvements for their furnished lets, or made other investments based around previously offered relief, will be very worried about the prospect of the relief ending.

"And at a time when many of these businesses face strict new fire regulations, I believe that an additional burden like the removal of certain tax reliefs could spell the end for some businesses unable to absorb the costs."