EXEMPTION FROM VAT INCREASE

Please note that the rate of VAT will increase from 17.5% to 20% in January 2011, but visitors who pay all or part of the rental on their holiday accommodation before the end of December will be exempt from the additional tax on that pre-payment.

Government advice to traders is as follows:

" The normal rule is that you should account for VAT on a deposit or pre-payment at the rate in force when you receive it. If you receive a deposit before 4 January 2011 for goods or services that you will supply on or after that date the 17.5 per cent rate of VAT will apply to the deposit and 20 per cent will apply to the balance."

Where VAT is applicable, please consider paying the full rental or as much as you find convenient before the end of December 2010. Such payments are not normally refundable in the event of cancellation so do check to see whether your existing insurance or credit-card facility protects you. If not, do obtain proper insurance for this and all other such pre-payments.