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| Version 4 | Version 5 |
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| Changes proposed to Wales holiday let tax rules | Changes proposed to Wales holiday let tax rules |
| (about 2 hours later) | |
| Abersoch in Gwynedd sees its local population skyrocket in the summer | Abersoch in Gwynedd sees its local population skyrocket in the summer |
| Controversial tax rules for owners of self-catering holiday accommodation in Wales look set to change following proposals put forward by the Welsh government. | Controversial tax rules for owners of self-catering holiday accommodation in Wales look set to change following proposals put forward by the Welsh government. |
| 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. | 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. | 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. | 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. |
| A total of 40% of holiday lets in Wales have not met the letting criteria since the new rules were brought in from 2023. | |
| Drakeford's new plans were criticised by Welsh language society Cymdeithas yr Iaith. | |
| The campaign group said the Welsh government should be "focusing on the housing crisis" rather than changing recent legislation which the "majority of businesses are complying with". | The campaign group said the Welsh government should be "focusing on the housing crisis" rather than changing recent legislation which the "majority of businesses are complying with". |
| The Professional Association of Self-Caterers (PASC) also criticised the latest announcement, calling it a "token gesture that fails to address the real crisis facing Welsh tourism businesses". | The Professional Association of Self-Caterers (PASC) also criticised the latest announcement, calling it a "token gesture that fails to address the real crisis facing Welsh tourism businesses". |
| Welsh Conservative Gareth Davies said the 182-day rule was "harming our tourism industry" and pledged that a Conservative government in the Senedd would reduce the threshold to 105 days. | Welsh Conservative Gareth Davies said the 182-day rule was "harming our tourism industry" and pledged that a Conservative government in the Senedd would reduce the threshold to 105 days. |
| "Tinkering around the edges will not help struggling businesses", he said. | "Tinkering around the edges will not help struggling businesses", he said. |
| A Plaid Cymru spokesperson said they welcome "the increased flexibility for owners of holiday lets, however the occupancy threshold remains unchanged and continues to be a source of anxiety for many Welsh small businesses, particularly in rural Wales. | |
| "The government must also offer greater clarity on the criteria which allows exemptions in some cases, for example dwellings on farmland that would not be suitable for the open market. | |
| "We remain committed to the importance of having raised the occupancy threshold, but we must always be aware of ensuring it's set at the most suitable level." | |
| Mark Drakeford wants to ensure "everyone makes a fair contribution towards local economies and funding public services" | Mark Drakeford wants to ensure "everyone makes a fair contribution towards local economies and funding public services" |
| What are the rules around holiday lets in Wales? | What are the rules around holiday lets in Wales? |
| 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. | 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. | 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. | 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. | 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. | 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. | 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 in the Senedd to implement these proposals, with changes intended to take effect on 1 April 2026. | Subject to the outcome of the consultation, the legislation would need to be passed in the Senedd to implement these proposals, with changes intended to take effect on 1 April 2026. |
| Drakeford said: "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. | Drakeford said: "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. | "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." | "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." |
| Cymdeithas yr Iaith says the Welsh government should be "focusing on the housing crisis" instead of the proposal | Cymdeithas yr Iaith says the Welsh government should be "focusing on the housing crisis" instead of the proposal |
| But director of PASC UK Cymru Nicky Williamson said "whilst members will welcome the ability to count charity weeks again, this is nowhere near enough". | But director of PASC UK Cymru Nicky Williamson said "whilst members will welcome the ability to count charity weeks again, this is nowhere near enough". |
| She added: "For three years we have continually presented the Welsh government with data showing the damage caused by this policy - yet they continue to ignore the reality. | She added: "For three years we have continually presented the Welsh government with data showing the damage caused by this policy - yet they continue to ignore the reality. |
| "Tourism in Wales has lost over a quarter of its overnight visitors since this policy began, yet the threshold for businesses hasn't changed, leaving owners punished for something completely outside their control. | "Tourism in Wales has lost over a quarter of its overnight visitors since this policy began, yet the threshold for businesses hasn't changed, leaving owners punished for something completely outside their control. |
| "Business owners are working harder than ever just to stand still, with 85% driven to discount to try to achieve the threshold. | "Business owners are working harder than ever just to stand still, with 85% driven to discount to try to achieve the threshold. |
| "The 182 threshold is the problem and this must be reduced significantly." | "The 182 threshold is the problem and this must be reduced significantly." |
| She explained that the consequence of not meeting the 182 day threshold is being removed from business rates listing back to council tax and a second home premium applied. | |
| In addition, she says people are receiving backdated council tax and second home premium bills for three years to 2022/23 – which can be up to £30,000 - with immediate payment required or the threat of court summons for money often not even due. | |
| There was also criticism from the Wales Tourism Alliance, whose chairman Rowland Rees-Evans said many operators were "discounting heavily just to reach the 182 threshold, which is obviously not sustainable in the long term". | There was also criticism from the Wales Tourism Alliance, whose chairman Rowland Rees-Evans said many operators were "discounting heavily just to reach the 182 threshold, which is obviously not sustainable in the long term". |
| "If you have a three-year rolling average and you don't achieve 182 days in year one and two, then it is highly unlikely that it will be achieved in the third year. | "If you have a three-year rolling average and you don't achieve 182 days in year one and two, then it is highly unlikely that it will be achieved in the third year. |
| "This will put enormous pressure on small businesses wherever they are in Wales." | "This will put enormous pressure on small businesses wherever they are in Wales." |
| Carol Peet, founder of a buying agency, said the proposed changes don't "go far enough" | Carol Peet, founder of a buying agency, said the proposed changes don't "go far enough" |
| Carol Peet, founder of West Wales Property Finders, based in Narberth, Pembrokeshire, said the proposal is "a step in the right direction but it doesn't go far enough". | Carol Peet, founder of West Wales Property Finders, based in Narberth, Pembrokeshire, said the proposal is "a step in the right direction but it doesn't go far enough". |
| She says the 182-day rule is "impacting the local economy, it's impacting locals jobs because there are a lot of properties up for sale and they're not selling, and so they're not being used as holiday lets". | She says the 182-day rule is "impacting the local economy, it's impacting locals jobs because there are a lot of properties up for sale and they're not selling, and so they're not being used as holiday lets". |
| "People who would stay there support the local economy and businesses, cleaners and things like that too. So it does impact the local economy," she added. | "People who would stay there support the local economy and businesses, cleaners and things like that too. So it does impact the local economy," she added. |