A 12-week Welsh Government consultation on the taxation of self-catering holiday accommodation closed yesterday.
Under current rules, self-catering properties generally need to be available for commercial letting for at least 252 days and actually let for 182 days to qualify for non-domestic rates rather than council tax.
The Government has been considering whether to reduce the 182-day threshold and introduce exemptions for certain properties that cannot reasonably be used as permanent homes.
These include accommodation on farms, properties within larger businesses and buildings subject to planning restrictions.
The Government’s consultation document says approximately 8,000 self-catering properties are currently listed for non-domestic rates, compared with more than 11,000 at the 2023 peak.
Why it matters: The outcome could affect tourism businesses, council tax revenues and the availability of housing in communities with substantial numbers of holiday properties.
The central policy challenge is balancing support for genuine tourism businesses with measures intended to protect housing for local residents.
Status: Consultation closed. No decision to change the threshold has been announced. The Government intends to complete its review before the end of 2026, with any resulting legislative changes potentially taking effect in April 2027.
