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The repeal, ending tax relief on holiday homes, which was announced in the budget of April 2009, would have had serious harmful consequences for the domestic tourism sector leading to a loss of over £200 million and 4,500 jobs.

The repeal was due to be included in the Finance Bill and has been given a reprieve following industry pressure from ABTA, the Tourism Alliance and ABTA Member the Holiday Cottages Group. A review of the repeal was one the key demands in the ABTA Travel Manifesto and follows on from representations made by the Association to government earlier in the year.

Mark Tanzer ABTA Chief Executive said: “The repeal of the FHL rules would have had an extremely damaging impact on domestic tourism and many of our Members’ businesses and we welcome the Government’s sensible decision to set aside the proposed repeal for the time being. We will call on the new government in office after 6 May to listen to industry concerns and reform FHLs in a way that both achieves Government objectives as well as supporting domestic tourism.”

7 April 2010

For further information contact:
Sean Tipton, Senior Press Officer, tel: 020 3117 0513,
Frances Tuke, Public Relations Manager, tel: 020 3117 0514, Mobile 07850 712 325,
Casia Zajac, Head of Communications, tel: 020 3117 0515, Mobile: 07545 927 411
Out of Hours:  Contact the Duty Press Officer via pager: 07659 190 987
E-mail: press@abta.co.uk
Web: www.abta.com
 
Notes to Editors
ABTA – The Travel Association was founded in 1950 and currently has 1,351 members with 5,700 outlets. Members include travel agents, tour operators and support services right across the spectrum from small family-owned businesses to the largest tour operators. 

ABTA is the largest travel association in the UK and its members provide 90% of the foreign package holidays in the UK as well as selling millions of independent travel arrangements. 

In 2008 ABTA merged with the Federation of Tour Operators [FTO], thereby cementing its role as the leading travel association and increasing benefits for both ABTA and FTO members. Both the ABTA brand which is highly recognised by consumers and the FTO brand which is well known in destinations will be retained.

As part of its comprehensive package of services to members, ABTA, as a non-party political organisation works to represent the interests of its Members to government and key opinion formers in the UK and EU.