Written question WQ85789

There are no plans to introduce exceptions in the application of the letting criteria, which apply equally to all self-catering properties across Wales. The assessment process and Wales-wide application of the criteria, as the basis for defining self-catering property as domestic or non-domestic, are well-established and are not being newly introduced as part of these changes. As with the current criteria, if self-catering properties do not meet the new criteria, they will be classified as domestic and liable for council tax.

However, on 24 May 2022, when I confirmed that the Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2022 had been laid, I also set out the consideration the Welsh Government is giving to providing exceptions from a council tax premium.

The Council Tax (Exceptions to Higher Amounts) (Wales) Regulations 2015 provide for an exception from a council tax premium for properties restricted by a planning condition preventing occupation for a continuous period of at least 28 days in any one‑year period. I am exploring whether amendments to these regulations are necessary, to account for any other type of planning condition that would prevent a property being used as a permanent residence.

I will also be issuing revised guidance to local authorities on additional options that are available to them in the event that self-catering properties restricted by planning conditions do not meet the letting criteria. These options include discretion to reduce or remove standard rate of council tax liability for certain properties, where considered appropriate by the local authority.

These steps are to ensure that property owners are making a fair contribution to local communities, either through letting out their property for the majority of the year or through paying council tax.

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