Victor Brierley’s Post

Disappointed at ‘tourist tax’ voted through by Scottish Parliament. This will cost jobs at a time when our tourism & hospitality businesses are already under pressure and will heap more costs onto visitors. The tax would undoubtedly lead to increased costs for visitors - for example room charges would need to increase to cover the tax. This could then push many small businesses over the VAT threshold resulting in further administration charges. Government & local councils must now ensure that local businesses have clear opportunity to determine how this additional tax revenue will be allocated & spent to directly support industry growth. https://lnkd.in/e6vbDTiz Scottish Chambers of Commerce Federation of Small Businesses (FSB) Scotland UKHospitality Association of Scotland's Self-Caterers The Scottish Tourism Alliance (STA) Scottish Property Federation The Scottish Hospitality Group

SCC respond to passing of tourist tax bill Dr Liz Cameron CBE, Chief Executive of Scottish Chambers of Commerce, said: “The passing of the Visitor Levy Bill by the Scottish Parliament will come as a great disappointment to many in the business community. Coming at a time when hospitality and tourism businesses are already under severe pressure, it will cost jobs and mean additional costs for visitors. “These costs will have a cascading effect, as room charges will need to increase for firms to cover the new tax. This will mean Scotland costs more in an incredibly competitive marketplace for visitors. It could also see many businesses go over the VAT threshold, resulting in further costs. “The Scottish Government and local councils must now ensure local business have the platform to determine how the additional tax revenue is spent in their local area, contributing directly towards boosting the visitor economy. https://lnkd.in/e8pBX5_5

Did you know that in 2023 alone, hosts in Canada generated approximately $319 million in taxes, including about $164 million in federal GST, HST, and PST? 📈 Click here to learn more: https://lnkd.in/g7FtyjRy

Draft Legislation for Abolishing the Furnished Holiday Lets (FHLs)Tax Regime Published: https://lnkd.in/epymnXjN Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said: “Both the Scottish and UK Governments should be laser focused on a pro-small business, pro-growth agenda to help revitalise our economy. Unfortunately, the abolition of the current Furnished Holiday Lettings (FHLs) tax regime runs contrary to that objective and will damage a key part of our tourist economy which supports jobs and livelihoods in communities across the UK. This is particularly unfortunate news for the sector in Scotland, as self-catering operators continue to be hammered by the costs associated with the Scottish Government’s onerous short-term let licensing and planning regulations and who will also face the introduction of a visitor levy. Scrapping FHL tax regime will make a bad situation much worse. We would encourage all affected stakeholders to engage with HM Treasury’s consultation on FHLs, highlighting the negative impact this will have for small businesses.” PASC UK Clare Winskill Patrick O'Shaughnessy Carl Thomson Ben Edgar-Spier Anna Scott Myah Thomas (Cert DDM) Alistair Handyside MBE Ralph Averbuch Iain Muirhead Marc Crothall MBE The Scottish Tourism Alliance (STA)

Abolition of FHL Tax Regime This article considers what we know so far, the policy drivers for this change, and what the eventual outcome might be. Association of Scotland's Self-Caterers PASC UK The Scottish Tourism Alliance (STA) https://lnkd.in/eJ3C3NQ4

Prior to the Olympics, and to increase UK tourism, Furnished Holiday Lets were given special tax status (I think I remarked on this very recently). You might think that with many hotels occupied by illegal immigrants that this resource would be more valuable than ever, but apparently too many people (HMRC think) are more interested in tax shelters than tourism. They have accordingly launched a 20-fold increase in investigations into holiday let owners.. In 2023-24, HMRC conducted nearly 2,000 enquiries, up from 375 the previous year and just 95 the year before that. The tax office is targeting holiday home investors suspected of failing to declare income, with experts warning that taxpayers could be caught out by coronavirus easements on tax rules which no longer apply. So if they are cheating then they are not claiming the tax advantages, so why cancel them? The government has also announced a £300m tax raid on short-term rentals, including the abolition of the Furnished Holiday Lettings regime (I say again, why if it is not being abused, but then, I answered that is a previous post, remember?). There are around 70,000 holiday homes in the UK, and if many are let and if some of that is not declared, you can see where they are coming from. Why is it that so many ideas get abused when they get tax benefits? That includes benefits, by the way!

UK holiday let tax plans bring economic risk to Scotland To avoid the potential economic fallout from this change in policy, both the UK Treasury and Scottish Government could consider some flexibility in the FHL tax and regulatory regime. As well as looking at decreasing the regulatory burdens, retaining some of the tax benefits for properties that cannot be used for residential purposes could alleviate some of the potential harm. Regardless of which party forms the next UK Government after July 4, ministers who want to maximise the growth potential of the tourism industry and safeguard farming and food production security must review these proposals or consider how to best offset the wider implications of ending FHL tax regime policy. Failure to do so has the potential to be economically damaging to Scotland and the rest of the UK. Association of Scotland's Self-Caterers https://lnkd.in/etxM36Dt

Furnish Holiday Let tax regime abolition, short-term holiday let statutory registration (England) and hospitality and retail business rates relief update. More at: https://lnkd.in/ejA3u4uT

**Sonoma County Lodging Tax Ballot Measure Stalled by Supervisors' Dispute** A recent dispute among Sonoma County supervisors has stalled a ballot measure aimed at increasing the lodging tax. This situation poses significant implications for local governance and business owners. Here are the key points: 1. **Background of the Lodging Tax Proposal:** - Aimed to increase Transient Occupancy Tax (TOT) from its current rate to finance tourism infrastructure and local projects. - The TOT is levied on visitors staying in hotels, B&Bs, and vacation rentals. 2. **Expectations and Projections:** - Anticipated millions in annual revenue for enhancing county services and boosting local tourism. - Potential benefits include improved infrastructure and increased employment opportunities. 3. **The Supervisors' Dispute:** - Disagreement on revenue allocation: tourism vs. community needs like affordable housing and public safety. - This conflict highlights broader governance and priority-setting challenges. 4. **Stakeholder Reactions:** - Mixed reactions from business owners, hoteliers, and residents. - Concerns include the potential deterrence of tourists vs. long-term community benefits. 5. **The Next Steps:** - Future discussions and compromises are needed to resolve the impasse. - Unresolved, this could mean lost opportunities for essential services and infrastructure development. **Implications for Business Owners:** - **Sustaining Tourism:** - Essential for economic growth; funding can boost local businesses and job creation. - **Community Development:** - Revenue can address critical local issues, providing a balanced approach to community benefits. - **Economic Growth:** - Improved infrastructure and services can stimulate the local economy and offer long-term returns. **Professional Insight:** Understanding the tax implications of local measures is vital for strategic financial planning. For personalized advice on how to maximize your tax savings and ensure your business thrives amid such changes, schedule a call with us at **[Together CFO](https://lnkd.in/gAa4dwUG. Your proactive approach today can translate into significant financial benefits tomorrow. Let's discuss your tailored tax-saving strategies and optimize your financial landscape. **#TaxSavings #SonomaCounty #BusinessGrowth #LocalGovernance #TogetherCFO**

#IRD NZ Do you provide short-stay accommodation? 🏡✈️ IRD updated a series of “Questions We’ve Been Asked” (QWBA) on the income tax implications of providing short-stay accommodation. 🧾 These draft QWBA’s are important for anyone renting out their property for short stays, such as a holiday home or a room through a booking platform. 🏠💼 Originally published in 2019, the updates reflect recent changes, including: ⭐ GST online marketplace rules (income tax implications) ⭐ Residential rental ring-fencing rules ⭐ Interest limitation rules ⭐ A new view on depreciation for mixed-use chattels ⭐ Changes to thresholds for depreciation and provisional tax Check out the draft QWBA's on our Tax Technical website – https://lnkd.in/g-Mks83M