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Legislation on Local Taxes for Second Homes & Self Catering Accommodation

Second home owners in wales

A heads up to second home and self catering accommodation owners based in Wales. Welsh Government has announced it will proceed with legislation on local taxes for second homes and self catering accommodation.

This rule will come in to play on 14 June 2022 and take effect from 1 April 2023. Property owners intending to meet new criteria should aim to do so during the 2022-23 operating year, with compliance being assessed some time after 1 April 2023.

These steps are part of Welsh Government’s plan to ensure property owners make a fair contribution to communities they have homes or businesses in, in order to address the impact of a large number of second homes and holiday lets on communities and the Welsh language.

Welsh Government say properties let out as self-catering accommodation on an infrequent basis should be liable for council tax. Increased letting criteria will ensure self-catering properties are classed as non-domestic only if they are being used for business purposes for the majority of the year.

In future, in any given year, a self-catering property needs to be made available to let 252 days of the year, and actually let for 182 days of them. Plans include a council tax premium on those second homes not eligible for business rates instead of council tax.

Let’s Talk

If you need to discuss the impact of these impending new rules, talk to our team of tax specialists. Request a chat via Let’s Talk.

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