HC Deb 14 June 1984 vol 61 cc1064-5
16. Sir Anthony Meyer

asked the Chancellor of the Exchequer what additional revenue he expects to receive as a result of the classification of the receipts from holiday lettings as unearned income.

Mr. Ian Stewart

The Finance Bill provides that receipts from furnished holiday lettings will generally be regarded as earned income.

Sir Anthony Meyer

Is my hon. Friend aware that the holiday letting industry, which is an important part of the tourist industry, has derived much comfort from the statements made by the Chief Secretary in Committee? Will he ensure that, in drawing up a definition of what qualifies for holiday letting, due regard is paid to the fact that in certain areas, notably in the part of north Wales that I represent, it is sometimes extremely difficult to let these homes for as many as 90 days in the year?

Mr. Stewart

My right hon. and learned Friend is aware of the problem of the classification of qualifying conditions and he will consider carefully what my hon. Friend has said. I also welcome very much my hon. Friend's comments about the announcement that my right hon. and learned Friend made in June about treating furnished holiday lettings under case 1. This has been widely welcomed in coastal and holiday towns.