Short-Term Letting for Holiday Purposes Debate

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Department: Wales Office

Short-Term Letting for Holiday Purposes

Lord Campbell-Savours Excerpts
Thursday 2nd March 2017

(7 years, 8 months ago)

Lords Chamber
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Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, the taxation rules would apply in the normal way. Where there is a capital gain, the owner of the property would be responsible for that in the normal way, subject to reliefs, and the owner would be responsible for schedular income tax in the normal way.

Lord Campbell-Savours Portrait Lord Campbell-Savours (Lab)
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The Minister said that local authorities can enforce the law. These cases cost thousands of pounds. Why should the council tax payer pick up the bill? Surely there has to be another solution.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, under the Deregulation Act there is responsibility for enforcing this against a particular owner of a property. Initially, of course, there would be a discussion—I do not suppose that the first thing that happens is that it ends up in court—but for those defying the law, there is potentially a £20,000 fine on summary conviction and an unlimited fine on indictment, which would be a considerable incentive to obey the law. That is what we are finding in the great bulk of cases.