Update on tax rules for self-catering holiday let owners

CLA Cymru staff are continuing to lobby against the 182 day minimum let day for self catered holiday lets. The changes could leave members facing sudden and unexpectedly large council tax bills.

We have written again to the finance minister Mark Drakeford with a list of demands. We are also continuing to work with the other key bodies in this sector, including the Professional Association of Self-Caterers (PASC) and Welsh Tourism Alliance (WTA), to highlight the damage this policy is inflicting on a key sector of the rural economy.

There is a new consultation out now on proposals to:

• enable properties on business rates to average their days let over 2 or 3 years
• enable an allowance of donations to charity for properties on business rates
• encourage a stepped transition for properties moving from business rates to Council Tax

However, we continue to request that the Welsh Government and relevant authorities:

• Reduce the letting threshold from 182 to 105 days, effective with immediate effect.
• Meet with CLA officials, other stakeholders and members by the changes in policy.
• Review the implementation timeline and formally acknowledge the inadequate communication with businesses ahead of policy implementation.
• Ensure local authorities adhere to planning-based exemptions before issuing premiums.
• Improve coordination and communication between the VOA and local councils to prevent errors and reduce the burden on property owners.
• Introduce a temporary suspension or payment flexibility (e.g. monthly instalments) for disputed bills until the VOA backlog is addressed.
• Provide clearer, earlier communication around any future changes, including proactive outreach to all affected property owners.

The consultation is open until 20 November. You can respond to the consultation here.

All members affected or confused by this issue are welcome to contact the CLA Cymru team for personalised advice and guidance.