The Welsh Government has published 'Consultation on draft Non-Domestic Rating (Definition of Domestic Property) (Wales) Order 2022' which seeks views on alterations to the treatment of self-catering accommodation for Business Rates and Council Tax purposes. 

The Welsh Government Recently announced that in order to address the issue of second homes and unaffordable housing in many areas of Wales, the conditions for a let property to be considered non-domestic and therefore liable to Business Rates would be amended.

It is proposed that from 1 April 2023, for self-catering accommodation such as Holiday lets to be liable for Business Rates rather than Council Tax, the property must be:

  • Intended to be available for letting commercially as self-catering accommodation for short periods totalling 252 days (currently 140 days) or more in the following 12‑month period.
  • Available for letting commercially as self-catering accommodation for short periods totalling 252 days or more (currently 140 days) in the 12 months prior to assessment.
  • Commercially let for short periods in those 12 months for at least 182 days (currently 70 days).

The consultation now published seeks views on the draft Order which implements the above changes.

Responses can be made online, by email, or by post. The consultation closes on 12 April 2022.

Consultation questions

1. Does the amending of subsection (2BB) altering reference to ‘70 days’ to now read ‘182 days’, used to define the period a property or aggregated property is required to be actually let, provide clarity? If not, how can it be improved?

2. Does the amending of subsection (2BB) altering reference to ‘105 days’ to now read ‘252 days’, used to define the period a property is required to be intended to be available to let and have been available to let provide clarity? If not, how can it be improved?

3. Does the wording in Article 3 provide clarity that properties assessed prior to 1 April 2023 are treated on the basis of meeting the current thresholds?

4. Are there any other issues regarding the practical application of the Draft Order?

5. Do you have any other comments about the drafting of the Draft Order?

6. The Welsh Government would like your views on the effects these proposals would have on the Welsh language, specifically on:

  • Opportunities for people to use Welsh; and
  • Treating the Welsh language no less favourably than English. 

What effects do you think there would be? How could positive effects be increased, or negative effects be mitigated?

7. Please also explain how you believe the proposals could be formulated or changed so as to have:

  • Positive effects or increased positive effects on opportunities for people to use the Welsh language and on treating the Welsh language no less favourably than the English language; and
  • No adverse effects on opportunities for people to use the Welsh language and on treating the Welsh language no less favourably than the English language.

8. We have asked a number of specific questions. If you have any related points that we have not specifically addressed, please use this space to record them.

Useful guides on this topic

Furnished Holiday Letting
What is Furnished Holiday Letting? How do you qualify for Furnished Holiday Letting? What are the rules for Furnished Holiday Letting?

Property profits & losses: Toolkit (2021-22)
Our Property profits & losses toolkit takes HMRC's version and adds a great deal more information about what you can claim as an individual.

Buy-to-let ownership: personal v. company?
What is the most tax-efficient option to own buy-to-let property?  Personally or via a company? What are the income and Corporation Tax, CGT, IHT, ATED, SDLT, or VAT issues? With tips on profit extraction and other planning points, case studies and links to further guidance.

External link

Consultation on draft Non-Domestic Rating (Definition of Domestic Property) (Wales) Order 2022 


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