Changes proposed to Wales holiday let tax rules

"Since 2023, self-catering properties must be available for 252 days and let out for 182 days each year to pay non-domestic rates instead of the higher council tax. The Welsh government is now proposing changing this to an average of 182 days let over several years. Cabinet Secretary for Finance and Welsh Language Mark Drakeford said the Welsh government had "listened" to feedback and was proposing "small changes" to the rules."

"Previously, properties made available for let for at least 140 days - and actually let for 70 - qualified for lower business rates rather than council tax. That system still operates in England. However, in Wales properties now need to be made available for at least 252 days, and actually let for 182. If not, they can be classed as second homes and liable for council tax - which in some areas means paying an additional premium."

"The new proposals would allow for up to 14 days of free holidays donated to charity to count towards the 182 day target. A consultation, open until 20 November, 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. Subject to the outcome of the consultation, the legislation would need to be passed"

Since 2023 self-catering properties in Wales must be available for 252 days and let for 182 days to qualify for non-domestic rates rather than council tax. The Welsh government proposes changing the requirement to an average of 182 days let over several years. Proposed changes would allow up to 14 donated charity holiday days to count towards the 182-day target. A consultation open until 20 November asks whether councils should consider measures such as a 12-month grace period to give businesses more time to adjust before higher council tax rates apply. Critics including Cymdeithas yr Iaith and PASC say the changes are inadequate or misfocused. Subject to consultation outcomes, legislation would need to be passed.

Read at www.bbc.com