Petition Scrap the council tax "loophole": holiday lets should pay their way
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.
At 250 signatures...
All petitions with more than 250 signatures will be discussed by the Petitions Committee
At 10,000 signatures...
Petitions with more than 10,000 signatures will be considered for a debate in the Senedd