Written Statement: The classification of self-catering accommodation for local tax purposes

Rebecca Evans MS, Minister for Finance and Local Government

“On 2 March 2022, I announced the next steps being taken by the Welsh Government, following our consultation on local taxes for second homes and self catering accommodation. The steps form part of our plans to ensure property owners make a fair contribution to the communities where they have homes or run businesses. This work, in turn, is part of the Welsh Government’s three-pronged approach to addressing the impact that large numbers of second homes and holiday lets can have on communities and the Welsh language.

The views conveyed in the consultation, including those from respondents representing the wider tourism industry, clearly support a change to the criteria for self-catering accommodation to be classified as non-domestic. Respondents were of the view that the majority of genuine holiday accommodation businesses would be able to satisfy increased letting thresholds, and a wide range of possible alternatives was suggested. Increasing the thresholds will provide a clearer demonstration that the properties concerned are being let regularly and are making a substantial contribution to the local economy.

Following our consultation, the Welsh Government is of the view that properties let out as self-catering accommodation on an infrequent basis should be liable for council tax. Increased letting criteria will ensure that self-catering properties are classed as non-domestic, only if they are being used for business purposes for the majority of the year.

I, therefore, announced an increase to the number of days, within any 12-month period, that a self-catering property is required to be made available to let, from 140 to 252 days, and actually let, from 70 to 182 days. A technical consultation on the draft Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2022 (“the Order”) ran from 1 March to 12 April 2022.

The consultation sought views on the clarity and practical application of the draft legislation. I have published a summary of responses….”

To read the full statement visit Written Statement: The classification of self-catering accommodation for local tax purposes (24 May 2022) | GOV.WALES

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