The proposals consulted on were:
- enable an average of days let over multiple years to be taken as evidence of compliance, where 182 days letting are not achieved in the previous year. This is intended to provide an opportunity for operators whose compliance lapses by a narrow margin to potentially achieve 182 days letting again, before they would otherwise become liable for council tax.
- enable an allowance of donations to charity for properties on business rates. The proposal to enable an allowance of up to 14 days per year for donations to charity of short breaks to count towards the letting criteria. This is intended to ensure any such donations are not disincentivised and support the wider public benefit they provide.
- encourage a stepped transition for properties moving from business rates to Council Tax. The consultation sought views on the Welsh Government’s intention to encourage local authorities to support self-catering operators who do not meet the non-domestic rates letting criteria with a stepped transition to council tax, charged at the standard rate of council tax for the first year before any premium is applied.
The Welsh Government’s policy position was set out in a previous statement on this matter and in the consultation. Recognising that 60% of self-catering properties have already met the letting criteria, WG remain of the view that, for a property to be classified as non-domestic for local tax purposes, it should be let for the majority of the year.
Following the consultation, WG will proceed with the necessary steps to enable the proposed refinements to the application of the letting criteria to take effect from 1 April 2026. The Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2026 has been made and laid before the Senedd for that purpose.
In considering the consultation responses, WG have also decided to legislate for a statutory exception from a council tax premium, to ensure the proposal for a stepped transition is applied on a consistent basis nationally across Wales. The necessary regulations to deliver this proposal will be developed and brought forward as soon as possible, to apply from 1 April 2027. The Welsh Government will work with local government to deliver these policy refinements.
