New proposals have been suggested to adjust the way tax rules for self-catering holiday let owners are applied.

Since April 2023, self-catering properties must be available for 252 days and actually let for 182 days each year to pay non-domestic rates instead of council tax. The rules were brought in to ensure property owners make a fair contribution to their local community.

The Welsh Government is seeking views on two key changes to the way the rules are applied, to give the sector extra stability:

  • Allowing holiday let owners to use an average of 182 days let over several years.
  • Allowing up to 14 days of free holidays donated to charity to count towards the 182-day target.

The consultation also 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 when they move from non-domestic to domestic classification.

Cabinet Secretary for Finance and Welsh Language, Mark Drakeford said: “Tourism makes an important contribution to the Welsh economy and to Welsh life. 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.

“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.”