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Part of our role at MWT is to represent the tourism industry at a regional and national level. We do this on a number of regional and national fora including Wales Tourism Alliance, Wales Cross Party Group on Tourism and Mid Wales Regional Tourism Forum and Growing Mid Wales Forum. We are also members of the Mid and North Powys Destination Network.
Your membership helps to support this activity, providing a stronger voice for the tourism sector. |
Welsh Government Changes to Self Catering Business Rate Threshold
Sign the Petition
Please sign and share this petition to allow exemptions to the 182-day occupancy rule to reduce harm to real Welsh self-catering businesses: https://petitions.senedd.wales/petitions/245202
The Trade Associations that represent genuine self-catering businesses in Wales (Wales Tourism Alliance, UKHospitality Cymru and PASC UK Ltd. Wales Branch) will meet Welsh Government with a view to agreeing mitigation measures to reduce the harm that the introduction of the 182-day occupancy rule will cause real Welsh-owned self-catering businesses. These are not second homes or casual lets. Over 30% of these businesses have said that they will have to close or sell without these exemptions.
The Trade Associations that represent genuine self-catering businesses in Wales (Wales Tourism Alliance, UKHospitality Cymru and PASC UK Ltd. Wales Branch) will meet Welsh Government with a view to agreeing mitigation measures to reduce the harm that the introduction of the 182-day occupancy rule will cause real Welsh-owned self-catering businesses. These are not second homes or casual lets. Over 30% of these businesses have said that they will have to close or sell without these exemptions.
Update on 182 Day Threshold in Wales
28 June 2022: The Order, by which 182 days will come into effect, is being challenged in the Senedd on the 6th of July. It is not expected to be stopped at this point, but the objective is to try to make the minister provide evidence to support 182 days, and to apply more pressure to get as many exemptions and dispensations as possible.
A Welsh Government Cross Party Group (CPG) meeting on Tourism will also specifically discuss the exemptions on 6th July.
Please sign the petition here
The WTA is pressing for a formal response from Visit Wales as to how they are planning to support tourism businesses achieve 182 days let.
In response to the 182-day consultation, Minister Rebecca Evans has said:
"The consultation received 499 responses. The vast majority were from self-catering property owners and representative bodies who stated that the criteria of 182 days actually let is too high. The response to the technical consultation was, therefore, very sector-specific, capturing only part of the broader set of stakeholders which responded to the previous policy consultation. This is generally expected for technical consultations, which mainly attract responses from stakeholders for whom the relevant legislation will be directly applicable. No issues with the technical clarity of the Order were identified."
CONSULTATION IN WALES TO ADDRESS BUSINESS RATES FRAUD & AVOIDANCE
The Welsh Government has launched another ‘technical’ consultation into the regulations that address fraud and avoidance when Business Rates payers provide information. This was consulted on in 2018 and led to the following measures were announced in October 2018.
These measures included:
More detail here: https://bit.ly/3u2DefR
The New Consultation seems focussed on the measure to introduce a new legal power for local authorities to request information from ratepayers and third parties providing a service in relation to a property, to support their role in the billing and collection of non-domestic rates.
The details on this new Consultation can be found here: https://bit.ly/3u7aXEY
This Consultation closes on the 16th September 2022.
A Welsh Government Cross Party Group (CPG) meeting on Tourism will also specifically discuss the exemptions on 6th July.
Please sign the petition here
The WTA is pressing for a formal response from Visit Wales as to how they are planning to support tourism businesses achieve 182 days let.
In response to the 182-day consultation, Minister Rebecca Evans has said:
"The consultation received 499 responses. The vast majority were from self-catering property owners and representative bodies who stated that the criteria of 182 days actually let is too high. The response to the technical consultation was, therefore, very sector-specific, capturing only part of the broader set of stakeholders which responded to the previous policy consultation. This is generally expected for technical consultations, which mainly attract responses from stakeholders for whom the relevant legislation will be directly applicable. No issues with the technical clarity of the Order were identified."
CONSULTATION IN WALES TO ADDRESS BUSINESS RATES FRAUD & AVOIDANCE
The Welsh Government has launched another ‘technical’ consultation into the regulations that address fraud and avoidance when Business Rates payers provide information. This was consulted on in 2018 and led to the following measures were announced in October 2018.
These measures included:
- Exploring a new legal obligation on ratepayers to notify their local authority of a change in circumstances which would affect their rates bills;
- A new legal power for local authorities to request information from ratepayers and third parties to aid authorities in discharging the billing and collection function;
- A new legal power for local authorities to enter and inspect non-domestic properties (hereditaments) to verify information relevant to the billing function;
More detail here: https://bit.ly/3u2DefR
The New Consultation seems focussed on the measure to introduce a new legal power for local authorities to request information from ratepayers and third parties providing a service in relation to a property, to support their role in the billing and collection of non-domestic rates.
The details on this new Consultation can be found here: https://bit.ly/3u7aXEY
This Consultation closes on the 16th September 2022.
14/06/22: Local Government and Housing Committee publish its inquiry report into second homes
25/05/22: Industry wide disbelief at welsh governments statement to push ahead with proposed tax hike for self-catering (WTA)
24/05/22: WRITTEN STATEMENT: The classification of self-catering accommodation for local tax purposes
25/05/22: Industry wide disbelief at welsh governments statement to push ahead with proposed tax hike for self-catering (WTA)
24/05/22: WRITTEN STATEMENT: The classification of self-catering accommodation for local tax purposes
MWT Cymru has been chasing the Welsh Government for clarification over the NDR threshold for Self Catering.
26/05/22 we received the following response:
"Firstly, the current exemption for council tax premiums for properties with planning constraints is set out in legislation and applies on a pan-Wales basis. This is known as a class 6 exemption and should already be applied by local authorities. Full guidance on the application of the exemptions and operation of council tax premiums can be found at:
https://gov.wales/sites/default/files/publications/2019-06/council-tax-on-empty-and-second-homes.pdf#:~:text=From%201%20April%202017%2C%20local%20authorities%20will%20be,decision%20to%20be%20made%20by%20each%20local%20authority.
It should be noted that a revised version of the guidance will be published prior to 1 April 2023 to align with changes to the maximum level of premium and provide further clarity.
Secondly, any property, whether restricted by planning conditions, that does not meet the thresholds will be classified as domestic and become liable for council tax. Whether this is the standard rate only will be dependent on the individual circumstances of the property, including whether an exception applies.
Thirdly, the changes will take effect from 1 April 2023, with the Valuation Office Agency using the new criteria to assess properties from that date onwards. Any property assessed from 1 April 2023 onwards will be required to evidence 182 days actually let within the 12 months prior to the date of assessment.
Finally, the Welsh Government are considering the extent to which the current class 6 exemptions are appropriate. It should be noted that any changes in this area would be to widen the exceptions from a council tax premium, not to remove any. It is intended that any such considerations be carried out and, if required, legislation be in place for 1 April 2023."
26/05/22 we received the following response:
"Firstly, the current exemption for council tax premiums for properties with planning constraints is set out in legislation and applies on a pan-Wales basis. This is known as a class 6 exemption and should already be applied by local authorities. Full guidance on the application of the exemptions and operation of council tax premiums can be found at:
https://gov.wales/sites/default/files/publications/2019-06/council-tax-on-empty-and-second-homes.pdf#:~:text=From%201%20April%202017%2C%20local%20authorities%20will%20be,decision%20to%20be%20made%20by%20each%20local%20authority.
It should be noted that a revised version of the guidance will be published prior to 1 April 2023 to align with changes to the maximum level of premium and provide further clarity.
Secondly, any property, whether restricted by planning conditions, that does not meet the thresholds will be classified as domestic and become liable for council tax. Whether this is the standard rate only will be dependent on the individual circumstances of the property, including whether an exception applies.
Thirdly, the changes will take effect from 1 April 2023, with the Valuation Office Agency using the new criteria to assess properties from that date onwards. Any property assessed from 1 April 2023 onwards will be required to evidence 182 days actually let within the 12 months prior to the date of assessment.
Finally, the Welsh Government are considering the extent to which the current class 6 exemptions are appropriate. It should be noted that any changes in this area would be to widen the exceptions from a council tax premium, not to remove any. It is intended that any such considerations be carried out and, if required, legislation be in place for 1 April 2023."
Press releases / Latest News
05/07/22: Tourism leader challenges Welsh Government's radical second homes rules: Wales Tourism Alliance News - Wales Tourism Alliance (wta.org.uk)
04/07/22: Visit Wales Industry News: New package of measures to address high numbers of second homes
25/04/22: Wales’ tourism industry urges Welsh Government rethink on self-catering taxation plans
16/03/22: Businesses threatened by Welsh tax proposals, warns tourism boss - MWT Cymru
04/07/22: Visit Wales Industry News: New package of measures to address high numbers of second homes
25/04/22: Wales’ tourism industry urges Welsh Government rethink on self-catering taxation plans
16/03/22: Businesses threatened by Welsh tax proposals, warns tourism boss - MWT Cymru
Archived news / updates
background information / archive
March 2022: The Welsh Government (WG) have announced that they are considering 'immediate and radical changes using the planning, property and taxation systems' to address concerns about the number of second homes in some local communities in Wales.
We are concerned about potential unintended consequences that the proposed 'immediate and radical changes' may have on our tourism economy, and the direct impact on our businesses already struggling to recover from the Covid pandemic.
These proposed changes from April 2023 include:
These changes are not being led by Visit Wales, but by other departments within the Welsh Government.
Read our updates about this important issue here:
We are concerned about potential unintended consequences that the proposed 'immediate and radical changes' may have on our tourism economy, and the direct impact on our businesses already struggling to recover from the Covid pandemic.
These proposed changes from April 2023 include:
- Raising the current threshold for businesses to be included in the non domestic rate (NDR) register from 140 day available to let / 70 days actual let, to 252 days available to let / 182 days actual let (in any 12 month period)
- Change to the discretionary powers available to your Local Authorities to charge a council tax premium of up to 300% of the standard rate (current max. premium is 100% and only 3 LA's in Wales are charging the maximum 100% premium.) Businesses who fall beneath the NDR threshold may be liable to pay these premium rates.
These changes are not being led by Visit Wales, but by other departments within the Welsh Government.
Read our updates about this important issue here:
Technical consultation - this has now closed
The Technical Consultation has now closed.
Rebecca Evans MS, Minister for Finance and Local Government, has launched a technical consultation on the new draft strategy which will be open for responses until 12 April 2022.
View Consultation Documents
Submit your comments by 12 April 2022, in any of the following ways:
RESPOND ONLINE
Online form here
EMAIL
Download the response form.
Complete and respond to: LGFR.Consultations@gov.wales
POST
Download the response form.
Complete and respond to:
Non-Domestic Rates Policy Branch
Welsh Government
Cathays Park
Cardiff
CF10 3NQ
Rebecca Evans MS, Minister for Finance and Local Government, has launched a technical consultation on the new draft strategy which will be open for responses until 12 April 2022.
View Consultation Documents
Submit your comments by 12 April 2022, in any of the following ways:
RESPOND ONLINE
Online form here
Download the response form.
Complete and respond to: LGFR.Consultations@gov.wales
POST
Download the response form.
Complete and respond to:
Non-Domestic Rates Policy Branch
Welsh Government
Cathays Park
Cardiff
CF10 3NQ
We encourage you to contact Welsh Government Ministers and your local area councillors, urging reconsideration of the proposed thresholds, particularly the occupancy threshold, to ensure we are all lobbying hard on this important issue.
Councillors' contact details
MWT members: If you would like to discuss anything relating to the proposed changes to the self catering business rate threshold, please contact Val Hawkins at MWT on 01654 702653.
All businesses: If you would like to discuss MWT's representational role and how you can support us via membership, please get in touch.
All businesses: If you would like to discuss MWT's representational role and how you can support us via membership, please get in touch.