UK Short-Let RulesTracker

Wales second homes council tax premium: holiday lets

In short

From Welsh Government guidance, GOV.UK and GOV.WALES. Not tax advice.

When the Welsh second homes premium hits a holiday let, the exceptions, and what each council we cover charges, with official sources.

Who it applies to

Holiday lets: business rates or council tax?

Since 1 April 2023 a self-catering property in Wales is valued for business rates only if it is available to let for at least 252 nights and actually let for at least 182 nights in the 12-month period you use. If it misses this, it moves to council tax and the second homes premium can apply. Track your nights with the occupancy threshold tracker.

Exceptions (Council Tax (Exceptions to Higher Amounts) (Wales) Regulations 2015)

Councils cannot charge the premium on these. They remove the premium, not the normal council tax.

ClassWho it covers
Class 1Marketed for sale at a reasonable price, or an offer accepted (up to 1 year; only once until it sells)
Class 2Marketed for let at a reasonable rent, or an offer accepted (up to 1 year; again only after a tenancy of 6 months or more)
Class 3Annex forming part of, or treated as part of, the main home
Class 4Home that would be someone's main home if they were not living in armed forces accommodation
Class 5Occupied caravan pitch or boat mooring (second homes only)
Class 6A planning condition stops anyone staying 28 days in a row in a year, limits it to holiday use only, or stops it being anyone's main home (second homes only)
Class 7Job-related home (second homes only)

Councils can also reduce the premium or the whole bill under section 13A of the Local Government Finance Act 1992. The Welsh Government suggests they consider this for farm barn conversions, annexes or garage conversions that are part of the owner's home, and lodges, caravans or chalets that move to council tax.

What to check for your let

Council rates we track

All Wales rules · All councils

England has a different premium (up to 100%) and a 140/70-night business rates test: see England second homes council tax premium. Holiday lets in Wales must also register with the Welsh Revenue Authority by 31 March 2027.

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Common questions

What is the second homes council tax premium in Wales?

Welsh councils can charge extra council tax on second homes, meaning homes that are substantially furnished but nobody's sole or main home. Since 1 April 2023 the premium can be up to 300% on top of the standard charge, so a bill of up to four times normal. Each council decides whether to charge it and at what rate.

Does it apply to my holiday let?

Only if the let is on council tax. Since 1 April 2023 a self-catering property in Wales pays business rates only if it is available to let for at least 252 nights and actually let for at least 182 nights. If it misses those thresholds it moves to council tax, and the council's second homes premium applies unless an exception fits.

Which exceptions matter most for holiday lets?

Class 6 is the big one: it covers homes where a planning condition stops anyone staying 28 days in a row in a year, limits the home to holiday use only, or stops it being anyone's main home. Class 3 covers annexes used as part of your main home.

Does advertising my holiday let count as "marketed for let"?

The guidance ties Class 2 to marketing at a reasonable rent compared with similar homes, with evidence such as a letting agency contract or Rent Smart Wales registration, which points to ordinary tenancies. We have not seen it say holiday-let advertising counts, so check with your council before relying on it.

Can my council reduce the premium for my holiday let?

Yes, it can. Councils can choose which types of property the premium applies to, and section 13A of the Local Government Finance Act 1992 lets them reduce any bill. The Welsh Government encourages them to think about doing this for farm barn conversions, annexes or garage conversions that are part of the owner's home, and lodges, caravans or chalets that have moved to council tax. Ask your council for its policy.

How much notice does a council have to give?

A council's first decision to charge a second homes premium must be made at least 1 year before the financial year it applies to. After that, it can change the rate before the start of each financial year, usually when full Council sets the budget.

Is this the same as registering with the Welsh Revenue Authority?

No. The premium is council tax. Separately, Wales requires visitor accommodation providers to register with the Welsh Revenue Authority. It is free, and the deadline is 31 March 2027.

Official sources

Show all official sources (4)

Not tax advice. Checked 2026-10-29. Your council decides whether a premium, exception or reduction applies, so check with them before acting.

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