Welsh Holiday Let Businesses Urged to Respond Before Tax Consultation Closes - Deadline 23 October

Self-catering accommodation businesses across Wales are being urged to have their say on a Welsh Government consultation reviewing the letting threshold used to determine whether properties qualify for business rates.

CLA Cymru says the consultation, which closes on Friday 23 October, offers an opportunity to change rules that have left some operators facing unexpected tax bills running into tens of thousands of pounds.

The organisation is calling for the current requirement of 182 days of commercial letting each year to be reduced to 105 days, arguing that the existing threshold does not reflect the realities of running a rural tourism business.

Review of the 182-Day Rule

Introduced in 2023, the rules require self-catering properties to be commercially let for at least 182 days annually, alongside meeting other conditions, to qualify for non-domestic rates.

Properties that fail to meet the requirements can become liable for council tax and may also face a second home premium of up to 300 per cent on top of the standard bill.

According to CLA Cymru, some businesses have been given just seven days’ notice to pay substantial unexpected tax demands.

The consultation seeks evidence on reducing the letting threshold and introducing exemptions for accommodation that could never be used as a permanent home, including properties subject to restrictive planning conditions.

CLA Cymru says the review recognises that established self-catering businesses can make an important contribution to local economies while being unable to achieve 182 days of bookings each year.

CLA Cymru Calls for a Lower Threshold

The Welsh Government consultation uses 154 days as an example of a possible reduced threshold. However, CLA Cymru argues that this would remain difficult to achieve for many operators outside the most popular visitor destinations.

A survey of the organisation’s members found that nearly 30 per cent of self-catering accommodation in Wales was let for fewer than 140 days annually.

Property size and location can influence occupancy, but CLA Cymru maintains that lower booking levels should not automatically mean an operation is regarded as less commercial.

It is proposing a threshold of 105 days, alongside clear and practical guidance explaining when exemptions would apply.

Businesses Asked to Share Their Experiences

With four days remaining until the consultation closes, CLA Cymru is encouraging operators to provide evidence about their own circumstances.

Responses could explain annual letting figures, how the existing threshold has affected investment or business plans, and whether the accommodation operates as part of a wider enterprise.

The organisation is also encouraging businesses supported by the self-catering sector, including cleaners, tradespeople and hospitality firms, to contribute evidence about the potential effects on their work.

CLA Cymru represents around 3,000 members across Wales and campaigns on issues affecting agriculture, rural businesses, tourism and planning.

The consultation closes on Friday 23 October 2026.

Respond to the consultation: Welsh Government — classification of self-catering properties for local tax purposes

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