Will the Welsh Government consider changing the 70-day letting criteria for non-domestic rates registration, in light of the repeated forced closures of the sector and the ongoing restrictions?
The Non-Domestic Rating (Definition of Domestic Property) (Wales) Orders set out the criteria for a self-catering property to be classified as non-domestic for local taxation purposes. The criteria include the requirement that a property must be let for at least 70 days in a 12-month period for it to be classified as self‑catering accommodation and listed as non‑domestic.
The criteria were determined following consultation and reflect the differing views of respondents, including those who supported lower thresholds and those who supported higher ones. The thresholds seek to strike a balance between the economic benefits of tourism and the impact of self-catering accommodation on local communities and the availability of affordable housing. The criteria take account of the fact that conditions will vary from year to year and that the thresholds might be more challenging to meet in some years than others.
Where the criteria have not been met, the property may be classed as domestic and become liable for council tax. However, if listed for council tax, the property may be eligible for certain exemptions or discounts. Local authorities also have discretionary powers to reduce council tax liability in certain circumstances.
Any change to the criteria would require legislative amendment and would be subject to further consultation. The Welsh Government continues to monitor the impact of the current legislation and we have indicated that we are willing to consider further amendment in future. The definitions underpin the local taxation system in Wales and it is vital that any further change is supported by robust evidence and as full an understanding of the potential impact as possible.