UK Budget 2024 - Tourism & Furnished Holiday Lets

The UK budget announcement yesterday (6th March 2024) featured another hit against the self-catering sector, this time from Westminster Conservative Chancellor, Jeremy Hunt MP. The news had already been extensively leaked that he planned to do away with FHL Allowances.
So, what was announced?

• The abolition of the Furnished Holiday Lets scheme. This punitive measure twill according to the Office of Budgetary Responsibility (OBR) raise a total of £600m by 2028-9. The abolition is due to come into effect in April 2025. The Chancellor and the Red Book suggest the primary reason for doing this, aside from the increased revenue, is for simplification purposes. Many of the MPs who have asked for this change, and much of the media briefing, was because they believe it will reduce the supply of holiday accommodation in hot spots. This time it is the UK Government hitting the tourist sector with more taxes and not helping us to be more competitive. 
• The rate of Capital Gains Tax on disposals of residential properties (such as second homes and holiday lets) has reduced from 28% to 24%.
  
• Alcohol Duty will be frozen to February 2025  
• The VAT threshold will increase from £80k to £90k which may help some small businesses, especially those on the edge of the registration limit. This could help by encouraging some business to open for more of the year. 
• Air Passenger Duty will increase for non-economy tickets i.e. for first class, business class and premium economy seats – by between 7-11%. A big increase. And next year APD will go up for economy passengers too by RPI.
• The Government will set permanent higher rates of tax reliefs for theatres, orchestras, museums and galleries.  

There was no news on reducing VAT and more broadly nothing to address the UK's position at the bottom of the international league table for price competitiveness as a destination.