Holiday lets now a 'source of financial stress' for farmers

FARMERS facing looming inheritance tax changes fear they could be tipped over the edge by strict holiday letting rules in Wales.

- By ANDREW FORGRAVE Countryside and Tourism Editor [e-mail]

Many farm businesses were encouraged to diversify into tourism but the industry fears government policy is putting years of investment at risk.

The National Farmers Union in Wales (NFU Cymru) said many of its members are being pushed into "unaffordable council tax liabilities" for self-catering units created in old cottages and outbuildings.

Four out of 10 holiday let businesses in Wales have been hit by extra taxation following the April 2023 introduction of new Welsh Government rules.

These increased required booking rates from 70 to 182 days. Failure to meet this threshold sees holiday lets switched from business rates to more costly council taxes, often compounded by additional local premiums.

At the time, the Farmers Union of Wales (FUW) said achieving 182 days would be "practically impossible" for many farmers.

NFU Cymru said holiday diversifications were incentivised by Cardiff as a means of underpinning Welsh farming - but these have now become a "source of financial stress".