Scrap the council tax "loophole": holiday lets should pay their way
Open for signatures until 2 November 2026.
315 signatures
- More than 250 signatures: considered by the Petitions CommitteeReached
- More than 10,000 signatures: considered for a debate in the SeneddNot reached
In 2024, over 10,000 houses/flats used as holiday lets in Wales paid no taxes whatsoever...no council tax, and no business rates: this is a loss in council tax revenue of about £48 million for that year alone.*
The legal "loophole" allows the switching over to pay business rates once a rental threshold is reached**. A low rateable value then means the owners get 100% small business rates relief: this means they pay nothing.
We want Welsh Government to scrap the council tax "loophole".
More details
This petition also aims to inform that: 1. £10,000 Covid-19 payments were awarded to many holiday lets listed on the business rates register; 2. the estimated cost to Welsh Government (2021-2022) of providing small business rates relief to holiday lets was £17 million ***
Houses/flats marketed and sold as domestic properties should pay council tax: the number of rental nights is irrelevant.
References: *FOI info from local authorities in Wales (2024); Band "D" council tax (and premium where applicable) used for calculations. **The Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2022. ***Explanatory Memorandum to the Non-Domestic Rating (Amendment if Definition of Domestic Property) (Wales) Order 2022 , dated 24 May 2022.
Signatures by constituency
The Senedd's petitions website lists 305 of the 315 signatures under a Senedd constituency.
| Constituency | Signatures |
|---|---|
| Gwynedd Maldwyn | 119 |
| Bangor Conwy Môn | 53 |
| Ceredigion Penfro | 29 |
| Sir Gaerfyrddin | 27 |
| Caerdydd Penarth | 16 |
| Clwyd | 15 |
| Caerdydd Ffynnon Taf |