The Welsh government has announced a review of its 182-day occupancy threshold for holiday homes, a move that could ease tax rules for some businesses following industry backlash. The review will explore whether the current threshold is appropriate and the potential impact of a modest reduction.
Additionally, the government proposes five new exemptions for properties that cannot be used as permanent residences, including those located on owners' farms. This consultation aims to find a balanced solution that supports the tourism sector while ensuring homes remain available for local communities.
"I have heard representations from a number of businesses that are making meaningful contributions to their local economies but are unable to meet the current threshold," said Jones, referring to the need for a workable solution for businesses, local authorities, and communities. The commitment is to strike a balance between retaining homes for local use and supporting tourism.
The Welsh Property Alliance for Self-Catering (PASC) welcomed the review but expressed concerns that the occupancy levels under consideration might still be too high. Nicky Williamson, the association's Welsh policy advisor, encouraged operators to articulate how current rules affect their businesses and emphasize the necessity of a realistic threshold for Welsh tourism to remain competitive.
"Our objective has never been to remove the distinction between genuine holiday businesses and second homes," Williamson stated. "It is to ensure that viable tourism businesses are not penalised by an occupancy requirement that many simply cannot achieve."
Reform UK Wales sought further details on the proposed "modest reduction" in the threshold, questioning whether it would offer substantial support to the sector. Shadow minister Louise Emery suggested that Plaid Cymru's proposed exemptions could lead to increased bureaucracy, advocating for a more ambitious plan to lower the threshold rather than making minor adjustments.