A woman in Wales was left stunned after receiving an eye-watering £17,000 council tax bill due to one rule change. Laura Tenison runs Wern-y-Cwm Farm, a stunning holiday retreat in Wales, and was hit with the staggering charge after the government implemented the 128-day rule.
The law stipulates that holiday homes must be available to let for at least 252 days (up from 140) of the year and occupied for at least 182 (up from 70) to qualify for business rates rather than council tax. Laura was unable to meet the threshold when it was first introduced in April 2023, meaning Wern-y-Cwm Farm was classed as a second home and subject to council tax. She told the Express: “We dip in and out, which means that one year we’ll be in business rates, one year will be back in council tax. So it’s a bit of a mess.
“But that rule has in effect become a sales tax. We had a £17,000 bill the year we came out of business rates and went back into council tax.”
Wern-y-Cwm Farm is a sprawling property that can sleep up to 46 people, so Laura and her team need time after guests have checked out to get it ready for the next visitors.
Laura said it can take days to get the retreat suitable for guests again, and repairs to the historic farm can take a month to six weeks every year.
She explained: “We border on that 182 nights. We do it by marketing very hard, being very on it, and running it as an all-time business, unlike many of those in hospitality in Wales who are doing it as an add-on to their farming businesses.”
Some local councils in Wales, such as those in Gwynedd, also have the option to charge a premium on top of the standard council tax for second homes.
The Welsh government introduced these changes to address the issue of housing affordability and ensure that holiday lets are genuinely contributing to the local economy by actively being used for rentals.
However, owners like Laura now face stricter requirements and the financial implications of not meeting the new occupancy thresholds.