§ 35. Mr. John Townendasked the Chancellor of the Exchequer if he will make a statement on the recent decision by the Inland Re venue to change the assessment of the income of holiday flat operators as a trade under schedule D case Ito unearned income from property under case VI.
§ Mr. RidleyThe Revenue's view, supported by decisons of the courts, has for many years been that this income is correctly assessable under case VI of schedule D. The business of furnished letting, including holiday letting, is not itself a trade for tax purposes, although a trade may also in certain circumstances be carried out in association with a letting.
As my hon. Friend knows I am considering this matter but I am not yet in a position to make a statement.