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.
The consultation is open until 20 November 2025: Proposed refinements to the classification of self-catering properties for local tax purposes | GOV.WALES