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Budget broadband boost for countryside is let down by other tax changes, says CLA The CLA today (Thursday, 25 March) said yesterday's Budget support for broadband is a huge boost for rural areas but changes in tax rules for furnished holiday accommodation are a major let down. The Association welcomed Alistair Darling's announcement of investment in superfast broadband, funded by a 50 pence landline duty to help provide rural areas with an adequate and effective service.
CLA President William Worsley said: "The Government has finally recognised the need for superfast broadband and realised that rural areas do count. However, we're still calling for more investment to put in place high-speed broadband as the landline levy will not fund all of this process."
The CLA said this commitment to broadband is overshadowed by the changes in tax rules for furnished holiday lettings which will have a detrimental effect on the countryside.
The President said: "Farmers will be discouraged from developing tourist accommodation because it will only be possible to offset the losses from letting in the early years against rental income from other properties, and not against earnings and other income. Most farmers will not have other properties in order to benefit.
"The lack of Capital Gains Tax roll-over relief will harm farmers when investing the proceeds of land sold to diversify into holiday accommodation."
He added: "If the furnished lettings demanded by families, in particular, are not available, holidaymakers will stay away and rural businesses and their employees will suffer."
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More articles and documents [News Archive] [22 April 2009] GN09-11 Capital Gains Tax: average land values in 1982 [Guidance notes] [10 June 2011] CLA58 - Succession planning for farmers and landowners [Advisory handbooks] [9 November 2010] Rate relief for horse enterprises on farms [Consultation response archive] [18 December 2002] |
A tax consultant with over 30 years’ experience in the legal profession and with the CLA, where he worked between 1976 and 1986. He is the editor of two technical newsletters, "Farm Tax Brief" and "Trusts and Estates".
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