The Country Land and Business Association (CLA) Cymru is encouraging affected businesses across Wales to engage in a Welsh Government consultation about self-catering accommodation.
CLA Cymru represents around 3,000 members across Wales, covering 11 million acres and works tirelessly to protect and shape the future of Wales’ rural landscape. From Welsh agriculture and the regeneration of the rural economy to improving the Welsh planning system, CLA Cymru engages with members at the Senedd and at Westminster to help shape policy.
The consultation on the taxation of self-catering accommodation has given the industry the chance to overturn rules that have left some businesses with seven days’ notice to pay tens of thousands of pounds in unexpected tax. Business owners have just days left to influence government policy.
The consultation applies to the 182-day threshold for classifying self-catering accommodation. The rule, introduced in 2023, requires properties to be commercially let for at least 182 days a year (and to meet other conditions) to qualify for non-domestic rates. If a property is let for fewer than 182 days, it becomes liable for council tax and may face a second home premium of up to 300 per cent of standard council tax rates.
During the 2026 Senedd Election, Plaid Cymru committed to keeping these rules under review. The Welsh Government has now recognised that many established self-catering properties that make a significant contribution to their local economies cannot achieve 182 days of commercial letting a year. This consultation forms part of that review. It is collecting evidence on reducing the number of days a property must be let and on introducing exemptions where the property could never be used as a permanent home, for example where this is prohibited by a planning condition. The consultation closes on 23 October.
CLA Cymru believes the threshold needs to be significantly reduced to reflect the realities of operating self-catering businesses in rural Wales. The Welsh Government is proposing a modest reduction, using 154 days as an example. However, for accommodation outside popular areas, even that target is often impossible. A survey of CLA members found that nearly 30 per cent of self-catering accommodation in Wales is let for fewer than 140 days a year. Occupancy levels are influenced by a property’s size and location, but CLA Cymru argues that a business should not be regarded as any less commercial for these reasons. To ensure genuine businesses across Wales can thrive, CLA Cymru proposes a threshold of 105 days and is calling for practical, workable guidance for businesses on when the exemptions apply.
The final threshold will be decided through this consultation process. The Welsh Government has called for evidence on the impact a reduction could have. CLA Cymru is encouraging self-catering businesses to respond with details of their own circumstances. Explaining how many days a property is let, how the 182-day threshold has affected business plans, and whether the accommodation forms part of a wider business will all strengthen the evidence the Welsh Government considers. Other businesses supported by the self-catering sector, such as tradespeople, cleaners and hospitality firms, are also encouraged to take part. The consultation closes in a little over a week on 23 October.
Interested parties can respond here: https://www.gov.wales/classification-self-catering-properties-local-tax-purposes
