Written question WQ84861

The Welsh Government is of the view that for a self-catering property to be treated as non-domestic for local taxation purposes, it should operate as a business for the majority of the year.

Where a property does not meet the proposed threshold of 182 days actually let, it will be classified as domestic for local taxation purposes and liable for council tax.

The thresholds take account of the responses to the recent consultation, and factors such as the operation of the current thresholds and the thresholds applied for other purposes. There is limited evidence available on overall occupancy rates for self-catering accommodation (eg. tourism accommodation occupancy surveys) and no detailed data on the extent to which individual self-catering properties are occupied.

For self-catering accommodation, the occupancy conditions will need to be met, independently of conditions that may be set out in other areas of legislation. This would apply to holiday lets within the same curtilage as a primary home, and these may then become liable for council tax. It is recognised that some situations are complex and valuation officers will need to assess a range of evidence in determining whether property is being used for domestic or non‑domestic purposes.

The Welsh Government is not in a position to say what might apply in particular circumstances. For local tax purposes, it would depend on how a property is used, and whether it is valued as a single unit or as separate units by the independent Valuation Office Agency. The owner would also need to take account of any legal conditions which might apply to property.

A Regulatory Impact Assessment (RIA) on the draft regulations is being compiled and will make use of all available information. A copy of the RIA will be laid alongside the regulations, pending the outcome of the ongoing technical consultation.

This work is being carried out in collaboration with Siân Gwenllian, the Plaid Cymru designated lead member, as part of the Co-operation Agreement between the Welsh Government and Plaid Cymru.