New proposals have been suggested to adjust the way tax rules for
self-catering holiday let owners are applied.
Since April 2023, self-catering properties must be available for
252 days and actually let for 182 days each year to pay
non-domestic rates instead of council tax. The rules were brought
in to ensure property owners make a fair contribution to their
local community.
The Welsh Government is seeking views on two key changes to the
way the rules are applied, to give the sector extra stability:
- Allowing holiday let owners to use an average of 182 days let
over several years. This means those who narrowly miss 182 days
letting in the latest year would remain on non-domestic rates if
they had achieved it on average over two or three previous years.
- Allowing up to 14 days of free holidays donated to charity to
count towards the 182-day target.
The consultation also asks whether councils should consider
giving businesses more time to adjust, such as a 12-month grace
period before they may have to pay higher council tax rates when
they move from non-domestic to domestic classification.
Cabinet Secretary for Finance and Welsh Language, said: “Tourism makes an
important contribution to the Welsh economy and to Welsh life.
Wales has so much to offer, and we want to ensure we realise that
potential in a way that achieves a balance between our
communities, businesses, landscapes and visitors.
“We work closely with tourism and hospitality businesses to help
address the challenges they face, while ensuring everyone makes a
fair contribution towards local economies and funding public
services.
“While most holiday let owners are already meeting the new rules
brought in from 2023, with 60% of properties meeting the letting
criteria, we have listened to those working in the sector and are
proposing small changes to the current rules to support them.”
The consultation is open until 20 November. Respond here.
Notes to editors
Subject to the outcome of the consultation, legislation would be
required to implement these proposals. Any legislative changes
would be intended to take effect on 1 April 2026.
