Welsh holiday lettings tax rule review

In mid‑July 2026, pressure mounted on the Welsh Government to reassess the 182‑day holiday‑let rule that determines whether self‑catering properties are charged business rates or a higher council‑tax rate. On 12 July, officials and industry groups called for a review, citing tourism concerns.

By 30 July, the government launched a formal 12‑week consultation. Finance Minister Elin Jones said the review would consider lowering the 182‑day threshold and adding five new exemptions for properties that cannot serve as permanent homes, such as farm‑based accommodations or units subject to planning restrictions. The rule, introduced in 2023, requires holiday lets to be available for at least 252 days and actually let for 182 days each year, with non‑compliance leading to a council‑tax premium of up to 300 %. About 40 % of Welsh holiday lets have struggled to meet the criteria, prompting the current review.