Councillors urge action as locals hit with £20,000 holiday let tax charges

Dale Spridgeon, Local Democracy Reporter

Some Gwynedd councillors are demanding locals be exempted from council tax premiums on short term holiday lets after some have been hit with “enormous” £20,000 bills.

Twelve county councillors, representing Llŷn and Eifionydd, are calling on Cyngor Gwynedd’s Cabinet to introduce “as a matter of urgency” a policy to allow exceptions for  local people.

They said the policy to charge council tax paid on short term lets is having a harmful impact on some residents.

Housing crisis

The council had brought in  the council tax measures on property in a bid to tackle a housing crisis, and to discourage the use of property as second homes or holiday lets.

The aim was to stop areas such as Morfa Nefyn, Aberdaron and Abersoch.  becoming overrun with holiday accommodation and effectively priing locals out of the property market.

But the Llŷn and Eifionydd councillors say the levy is actually hammering locals who have converted small outbuildings and garages.

“Calling on the cabinet of Cyngor Gwynedd to introduce, as a matter of urgency, a policy to allow exceptions with regard to the premium on council tax in the case of short-term holiday lets owned by local people.

“In accordance with the Welsh Government’s Guidelines on council tax on empty houses and second homes (March 2023), for the sake of fairness and transparency the authority should introduce a policy to allow a reduction in council tax liability in relation to the premium in the case of short-term accommodation, which is not subject to a planning condition that restricts its use as an ordinary dwelling and which fails to reach the 182 day letting threshold.

“Specifically, we call for an exceptions policy in the case of property used as self-catering accommodation, which has a long history of being used for that purpose and is within the curtilage of the owner’s dwelling, is part of the owner’s dwelling or is attached to the owner’s dwelling.

 “We, the undersigned, call on the cabinet of Cyngor Gwynedd to give serious consideration to the harmful effects of the premium on local people who let self-catering accommodation in Gwynedd and to introduce, as a matter of urgency, a policy to mitigate these effects.

“Over the last few months, a number of local people in Llŷn and Eifionydd who let a converted outbuilding or part of a house on a small scale, have received a council tax bill for enormous sums of £10,000 and £20,000.

“This injustice must end,” they said.

Premium regulations

The document was signed by Stephen William Churchman (Dolbenmaen); Anwen Davies (Efailnewydd and Buan); John Brynmor Hughes (Abersoch and Llanengan); Gareth Tudor Jones (Morfa Nefyn and Tudweiliog); Gwilym Jones, (Porthmadog west); Richard Glyn Roberts (Abererch);  Angela Russell (Llanbedrog and  Mynytho); Rhys Tudur ( Llanystumdwy); Hefin Underwood,  (Pwllheli south); Gareth Williams (Pen draw Llŷn) Gruffydd Williams (Nefyn);  Siân Williams (Criccieth).

A Cyngor Gwynedd spokesperson said: “The Valuation Office, which is an agency of HM Revenue and Customs Authority, decides what taxes are due on property, not county councils. Cyngor Gwynedd – like all other local governments – acts in accordance with the information we receive.

“We are currently looking at the situation in relation to council tax premium exemptions and a policy will be drawn up after consideration is given to the various situations.

“The Welsh Government established the right to levy a council tax premium to try to assist local authorities to better manage the use of homes such as second homes and holiday accommodation. The premium regulations do not distinguish who is the property owner.

“Taxpayers who are struggling to pay their tax bill can contact Gwynedd Council’s Finance Department to discuss their individual situation.”

It was also noted that  local government finance legislation includes provision setting out certain exceptions to the council tax premium, including seasonal homes, where year-round living is prohibited and annexes that form part of or are treated as part of the main dwelling.