Holiday Home Tax Scrapped

Chancellor Alistair Darling has been forced to scrap the proposed increase in tax levied on holiday rental homes.

A deal struck between the Government and David Cameron's Opposition to secure legislation before Parliament breaks up, will see the repeal of the furnished homes letting rules removed from the Finance Bill.

The proposed abolition of tax breaks for owners of holiday homes, could, it is estimated have increased the tax bill of holiday home owners by up to £4000.

The Tories have been quick to claim victory, saying their staunch opposition has led to the controversial tax being shelved. While Labour says it will look again at the repeal if it wins the General Election.

We have been following this story since we first reported it in August last year (read full story) and judging by the feedback we received many of you will be happy at this U-Turn.

Want to raise a glass in celebration? Why not try cider? The 10% above inflation hike on cider has also been shelved. It came into effect at the end of last month and will now expire on the 30th of June, much to the delight of the pop band the Wurzels.