Classification of self-catering holiday lets for local taxes in Wales
Properties used as self-catering holiday lets are classified either as domestic or non-domestic for local taxation purposes. Domestic properties are liable for council tax and non-domestic properties are liable for non-domestic rates (often known as business rates). Specific criteria are required to classify self-catering holiday lets, as the same properties could potentially be used either for this purpose or as domestic dwellings. Further details on the Welsh Government’s policy on this matter can be found here: Non-Domestic Rates for Self-Catering Properties in Wales | Business Wales (gov.wales)
Registration and licensing scheme for all visitor accommodation in Wales
The Government has announced that it will be introducing a Bill to regulate visitor accommodation, creating a register of all types of visitor accommodation in Wales. Further details can be found here: Registration and licensing scheme for all visitor accommodation in Wales | GOV.WALES
A Visitor levy for Wales
The Welsh Government is planning to give local authorities the ability to charge a visitor levy on overnight stays in their communities. This contribution will be paid by visitors and invested by local authorities in local tourism - helping to grow our economy, support our communities and preserve the beauty of Wales for future generations.
Visitor levies are used successfully around the world to fund projects that benefit both visitors and local communities, such as preserving green spaces, cleaner streets, visitor facilities, heritage sites and public transport.
Legislation for a visitor levy will be introduced into the Senedd by the end of 2024 for scrutiny. Should the Senedd endorse the legislation, it will then be for each local authority to decide if it wishes introduce a levy. A local authority would need to consult with its communities before making this decision. A notice period will also be given to ensure businesses and visitors are prepared.
Through the above process, we estimate that the earliest a visitor levy could be in place in any part of Wales is 2027.
Further information: A visitor levy for Wales | GOV.WALES
A resource to download: A visitor levy for Wales: a contribution for a sustainable future | GOV.WALES
Introducing a visitor levy is a Welsh Government Programme for Government commitment.
