New tax rules for second homes in Wales

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Penlan
Posts: 4
Joined: Thu Apr 28, 2022 4:55 am
Location: North Wales

New tax rules for second homes in Wales

Post by Penlan »

https://gov.wales/new-tax-rules-second-homes

The new rules come in from April 2023, to qualify for business rates you will have to let your property for at least 182 nights a year, up from 70, it also has to be available for 252 days a year, up from 140.

This is some task for holiday let owners in Wales, I think most places in wales become ghost towns out of season. I struggle to get 140 nights booked per year, last year was a good year because of covid, I managed to get 187 nights, the best ever year. I'm not going to make that this year. Or am I the only one struggling to get 140 nights bookings??

I run a 4 bedroom let that sleeps 9, I reduced it from 5 bedroom sleeps 10 to reduce the workload.
I wonder if I would get more bookings if I reduce it to one family size, say, 3 bedroom sleeps 6, or 2 bedroom sleeps 4. Where could I get such data?? Open to any ideas or stats...

These new rules will decimate the tourist industry in Wales surely, tourism is the bread and butter of Wales, where do they get such ideas?? I think its just an excuse to get more council tax.

I read that some second home owners are claiming that their holiday home is a holiday let, so they don't have to pay council tax and get business rates relief. The government is cracking down on this loophole, so now real holiday let owners are going to suffer.

Could the rest of the UK be next?

Hard times ahead I think!!
Drax
Posts: 173
Joined: Thu Jul 21, 2016 4:36 pm
Location: Yorkshire Dales

Re: New tax rules for second homes in Wales

Post by Drax »

Holiday lets in England have been receiving adverse reports in the press recently, with locations such as Cornwall, Whitby, The Lake District being identified as places where locals cannot afford to buy houses in their villages and towns because property is being bought by wealthy outsiders and turned into second homes or holiday lets. The MP for South Lakeland has been vocal in his support for locals with regard to this matter.
I live in the same village where our holiday let is located, there are also a substantial number of holiday lets in the village. I often hear villagers complaining about this issue and have actually got into arguments with some of them.
Especially in English holiday areas this matter is of concern to many local residents and is an emotive subject.
It would not surprise me if England could well follow Wales on this subject in the not-too-distant future and impose more stringent requirements for holiday let owners.
Keep your powder dry.
Goscar
Posts: 90
Joined: Sat Jan 26, 2013 11:27 am
Location: Pembrokeshire

Re: New tax rules for second homes in Wales

Post by Goscar »

The Welsh government's misguided decision to hammer the FHL sector represents too much of a financial risk/imposition for us to contemplate, so much so that we feel we have no alternative but to cease trading with effect from 30 March 2023.

We also sleep 8+1 and have been proud of the modest contribution we have made to the local economy over the past 20 years. We may struggle to achieve many more than 105 nights pa, however this translates into an average of, say, 700+ overnight stays. That's a lot of meals out, visits to paid attractions, boat trips, etc. Tourism is one of the jewels in Wales' crown, quite why its own government would want to take a wrecking ball to the sector defies belief.
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