Summary
New tax rules in Wales require holiday let owners to rent their properties for 182 days a year to get cheaper business rates. This change aims to help locals access properties in popular holiday areas but is seen as challenging by many owners. The Welsh government plans to introduce minor adjustments to these rules by 2027.
Key Facts
- In 2023, Wales set a requirement for holiday lets to be rented out for 182 days a year for owners to qualify for reduced business rates.
- Before the changes, holiday lets needed to be available for 140 days and rented for 70 days to get lower rates.
- Failure to meet the 182-day requirement classifies properties as second homes, liable for higher council tax and possible premiums.
- Some areas, like Gwynedd, charge second-home owners an additional 150% on their council tax.
- The Welsh government plans to allow averaging of 182 days over three years and permit 14 charity giveaway days to count as rentals by 2027.
- Industry groups argue that the 182-day rule is unmanageable and negatively affects tourism.
- Some business owners have considered selling their properties due to the pressures of meeting these requirements.
