Holiday let sector 'on cliff edge' thanks to 'horrendous' backdated rule

THOUSANDS of holiday let owners in Wales have been left bewildered after being hit with massive council tax bills out of the blue. It comes as an industry survey suggests nearly half of the country's self-catering businesses are now losing money, or barely breaking even, after failing to achieve new letting targets set by the government.

- By ANDREW FORGRAVE

A little-known change in the law has seen many owners receiving council tax demands that often run into tens of thousands of pounds.

Payments are often expected within seven days with the prospect of legal proceedings if they fail to settle.

The huge bills stem from a legal technicality over the number of nights a property has been let.

Although many owners believed they have met new letting thresholds set by the Welsh Government, and so thought they would not be liable for council tax, they've been caught out by a legislative pitfall.

According to critics, it's left the holiday let sector in Wales on a "cliff-edge". The Professional Association of Self-Caterers (PASC) said it is currently dealing with hundreds of cases with more inquiries coming in every day from disbelieving owners bereft at the iniquity of the situation.

A Welsh-speaking family letting out the family home in Abersoch, Gwynedd, is facing a three-year bill for £21,000 despite meeting all of what they thought to be their targets.

They say Cyngor Gwynedd is understanding but the situation is placing intolerable demands on the property's 85-year-old owner.

Meanwhile, a couple in Flintshire have received a demand for nearly £10,000. Colin and Rebecca Jones, from Afonwen, were left shocked to get a "ridiculous" bill for a small two-person cottage just 8ft-9ft from the family home, a former mill with its old water wheel still in the garden.

"You can imagine the stress," said Rebecca, an NHS personal assistant. "It's horrendous.

"It's having a terrible impact on our lives and we're now having to look at all options, including annexing the properties and stripping out the cottage's kitchen."

Since launching their business in February 2022, Colin and Rebecca have met what they thought were their required targets.

In the first year, they hit 164 nights - way over the 70-night threshold that apparently existed at the time.