Budget implications on holiday lets?

by Readers Question

8:47 AM, 12th March 2020
About 7 months ago

Budget implications on holiday lets?

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Budget implications on holiday lets?

I have just been watching the new Chancellor’s Budget speech and I was particularly interested in the proposals for business rates. He is proposing a grant of £3000 for Businesses that qualify for rates relief.

I understand that most holiday letting properties qualify for business rate relief and I assume that in this instance they will also qualify for the grant?

Does anyone have any thoughts on this as it would appear to encourage Buy to Let investors to move into holiday lets?

Bill

 


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Neil Patterson

9:00 AM, 12th March 2020
About 7 months ago

Hi Bill,

I have been through the whole Budget document and it is very light on detail and I think the Chancellors speech might have conflated the Rates assistance with the fine details of the Grant criteria that only really mentioned a: "£2.2 billion grant scheme for small businesses" Exactly what type of small businesses?

Lesley Thomas

10:01 AM, 12th March 2020
About 7 months ago

We own a successful holiday Let on Loch Ness, Scotland. We are already experiencing booking cancellations, particularly from the U.S.A. visiting guests. If we cannot get any financial support or at least a mortgage holiday, we will be facing extremely difficult (financial) times. A grant may help, so we are keen to find out about this option.

Neil Patterson

10:31 AM, 13th March 2020
About 6 months ago

Found it:

"The government will provide an additional £2.2 billion funding for local authorities to support small businesses that already pay little or no Business Rates because of Small Business Rate Relief (SBBR). This will provide a one-off grant of £3,000 to around 700,000 business currently eligible for SBRR or Rural Rate Relief, to help meet their ongoing business costs. For a property with a rateable value of £12,000, this is one quarter of their rateable value, or comparable to 3 months of rent."

trina_latham@yahoo.com

12:51 PM, 14th March 2020
About 6 months ago

Have any FHLs successfully applied for this grant yet?

Lesley Thomas

13:29 PM, 15th March 2020
About 6 months ago

I could not find anything on the Highland Council website to make an application for such a grant. I have however just sent an email to them with a copy of my Business Rates bill showing I am not paying any business rates and enquiring as to my eligibility under this government scheme. It may be too early for any Local Authorities to get to grips with this grant, so I am not holding my breath in any quick "yes" or "no" response to the grant.

Lesley Thomas

12:44 PM, 17th March 2020
About 6 months ago

Reply to the comment left by Lesley Thomas at 15/03/2020 - 13:29
I have received this reply from the Highland Council:

Good afternoon Mr Thomas

Thank you for your email. The situation is as follows:

On 14th March the Scottish Government announced a range of measures to support businesses through the Covid-19 outbreak.

This support will be available to businesses during the 2020/21 financial year and includes:
• 75% rates relief for retail, hospitality and leisure sectors with a rateable value of less than £69,000 from 1 April 2020
• £80m fund to provide grants of at least £3,000 to small businesses in sectors facing the worst economic impact of Covid-19
• 1.6% rates relief for all properties across Scotland, effectively reversing the planned below inflation uplift in the poundage from 1 April 2020
• Fixed rates relief of up to £5,000 for all pubs with a rateable value of less than £100,000 from 1 April 2020

The full details of how businesses can apply for the support, and which sectors will be eligible for the grant, are still being worked out.

The Council is therefore awaiting further information from the Scottish Government. Once this is received we will be working with the Scottish Government and its agencies to put in place arrangements and to alert the business community.

Andy

Andy McCann – The Highland Council - Economy and Regeneration Manager – 01463 702260


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