Changes to a controversial holiday property tax in Wales are being discussed after owners complain of “brutal” regulations.
In 2023, new eligibility rules for business rates were introduced in England and Wales for self-catering properties.
To be eligible for business rates in Wales, the property must be available to let commercially for short periods, totalling 252 nights or more, and actually stayed in for 182 nights or more.
The rules in Wales differ from those in England, where self-catering properties are eligible for the rates if they are available for at least 140 nights, and actually let out for at least 70 nights.
If a property does not meet the rules, owners must pay council tax out on business rates.
However, the Welsh government said that they are now discussing new proposals to amend this rule and are inviting people to share their views through a consultation, which remains open until 20 November.
One change, if approved, would mean that the 182 days of occupancy would be measured as an average over several years.
This would mean those who narrowly miss the total one year could remain on business rates if they had reached the amount, on average, over a longer period of time.
Another proposal seeks to allow property owners to donate up to a fortnight of their 182 days for charity use – and not be penalised.
The consultation comes after years of outrage from second property and holiday let owners, stating that the rule does more harm than good to businesses that rely on tourists.
Nicky Williamson, of the Professional Association of Self-Caterers (PASC) for Wales, warned many operators were struggling to meet the threshold, particularly during quieter months.
She told BBC News that without the “bed stock” of self-catering properties, “we don't have the facilities for tourists to stay.”
If tourism failed, she added, “then the number of people that are employed in tourism will start to lose jobs” and pubs and cafes are “not going to survive.”
Ms Williamson claims this could have an impact on the mental health of self-catering operators, which she described as “brutal”.
The rule was initially put in place to ensure property owners make a fair contribution to the local community.
The Welsh government has previously said that while it recognises the importance of tourism to the Welsh economy, it “must balance that with the needs of our communities, as everybody has a right to a decent, affordable home to buy or to rent that allows them to live and work locally.”
Cabinet secretary for finance and Welsh language, Mark Drakeford, reiterated this stance on Thursday during the announcement of the consultation, but recognised that tourism and hospitality businesses are seeking changes.
“While most holiday let owners are already meeting the new rules brought in from 2023, with 60 per cent 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,” he said.
For more travel news and advice, listen to Simon Calder’s podcast
Train tickets slashed to £1 in Wales this month
Millions of drivers warned ahead of bank holiday traffic chaos
Alarm after spree of tourist deaths in popular Thai holiday island
Ryanair to increase staff rewards for catching passengers with oversized cabin bags
Ryanair issues guidance after fears over new boarding pass rules
Bali issues urgent passport guidance for all foreign visitors
