A retiree in Wales has been presented with an annual council tax bill of over £9,000 for an outbuilding on her property that she converted into a holiday let. Caroline Byford, 62, stated that the Pembrokeshire council has classified the restored milking parlor as a 'second dwelling,' despite guests only having access through her main farmhouse.
Byford and her husband, Shaun, 64, purchased their Grade-II listed farmhouse in May 2024. The outbuilding, located near the farmhouse and previously in disrepair, is situated just three meters from their home. It had been used as additional living space by previous occupants.
To help supplement her pension, Byford decided to rent out the outbuilding as a holiday let. She noted that there is no independent access to the outbuilding; all access is through their home and garden, and it shares utility services with their farmhouse. She also stated that the property cannot be sold separately due to this lack of external access.
Under regulations for holiday lets, the dwelling must be rented out for at least 182 days a year and be available for 252 days. Byford explained that this requirement makes it difficult to plan personal time away, as she needs to be on-site to grant guests access.
Her council tax bill for the holiday let in 2024/25, including a 200 percent second home premium, was £6,032.64. The tax for her primary residence was £2,010.88. For 2025/26, the bill for the holiday let increased to £6,223.13, with a 150 percent second home premium, alongside a £2,941.84 charge for their farmhouse. The total annual council tax for the year amounts to £9,164.97.
Byford expressed frustration, questioning the benefit of restoring old farm outbuildings if it leads to penalties. She also cited privacy concerns, as she and her husband must consider holiday guests' presence. The average council tax bill for a Band D property in the UK is approximately £2,392 annually, according to the National Association of Local Councils.
Byford has contacted local Members of Parliament but has reportedly only received preliminary responses. She stated that the financial strain and stress of running the holiday let, coupled with the high tax burden, leave them with minimal profit after accounting for maintenance, insurance, and utility costs.