London Daily

Focus on the big picture.
Thursday, Jul 23, 2026

Covid: Holiday let businesses hit with thousands in tax

Covid: Holiday let businesses hit with thousands in tax

Self-catering businesses are calling for government action after being hit with council tax bills for thousands of pounds.

Holiday let owners said the bills, dating back to the pandemic, were "unfair" as they could not rent out their properties.

They would normally qualify for non-domestic rates, but failed to meet the threshold because of Covid lockdowns.

The Welsh government said anyone affected could contact their council.

A self-catering property has to be available for 140 days a year, with 70 days of bookings, to qualify for business rates.

Some businesses failed to let out their properties for the required nights during 2020-21, largely because of lockdown restrictions, and are liable to pay hefty council tax bills as a result.

The Valuation Office Agency (VOA) specify whether properties pay domestic or non-domestic rates, according to rules drawn up by the Welsh government.

It said "any change of the criteria would be a matter for the Welsh government as policy owners".

About 10,500 self-catering properties qualify for non-domestic rates in Wales, but the VOA will not disclose how many will now have to pay retrospective council tax.


Janet Tarrant was "shocked" when she was hit with a bill of more than £2,000

Janet Tarrant, who owns a holiday let in Penrhos, received a council tax demand from Gwynedd Council for £2,300, which also includes a second homes premium.

The property she owns can only be used as a holiday let.

"I couldn't believe they have taken no account of the exceptional year in 2020," she said.

"It's obvious to everyone I could have not have made that number of bookings because of cancellations and Covid restrictions. It's just not fair."

Mrs Tarrant said she had 58 cancellations in the period, but the council said the "cost of granting tax relief of this kind would fall on the taxpayers of Gwynedd in a period that is already extremely challenging for residents".
Janet Tarrant's booking list shows the extent of cancellations


Gerard Murphy, from Llandeilo, Carmarthenshire, converted his garage to a holiday let five years ago.

He has now been hit with a bill for £1,618, down from an initial £5,000.

"My wife was working in the local hospital and during the pandemic she was working one-to-one with patients on ventilators, with Covid. We cancelled a considerable number of bookings."

He is particularly angry about getting a bill two years after the pandemic.

"How can anybody factor that in to their profit and loss account? To pick a figure out of the air, and say you've got to pay it, I think is unfair."

Gerard Murphy was forced to cancel bookings while his wife worked on the frontline during the pandemic


Sam Rowlands, Conservative Member of the Senedd for North Wales, said "huge numbers" of businesses have contacted him.

He said: "It simply isn't fair and isn't right."

The Professional Association of Self Caterers (PASC) said Wales spent eight months of the 2020-21 year under national lockdown, in addition to local lockdowns, shielding, travel bans, advice to avoid public transport and limits on households mixing, which all deterred the public from going on holiday.

Alistair Handyside from PASC UK has called for council tax charges to be dropped, saying some businesses "hardly had 70 days they were allowed to open".

He added: "The decision to effectively fine self-catering business is unbelievable."

In a letter to the Welsh government, the Wales Tourism Alliance (WTA), Hospitality UK and PASC stated that properties were only available to let for a maximum period of between 83 and 90 days between April 2020 and April 2021.

A survey of PASC members revealed the average self-catering property was let for as few as 61 nights, with the Wales-wide average being 73.

The WTA has appealed to the Welsh government to intervene, but Minister for Finance and Local Government, Rebecca Evans, has told businesses to go to their local authority.

She said councils could use "discretionary powers to reduce a council tax liability by any amount".

Suzy Davies, of the Welsh Tourism Alliance, says businesses are 'questioning their own viability'


Chairwoman of the WTA, Suzy Davies, said the extra cost would cripple many small businesses.

She said: "We have businesses questioning their own viability. What we'd like is Welsh government to give us a modest amount of money to give to local authorities, to then zero people's council tax bills, bearing in mind this is for one year."

The letting period for business rates will increase from 70 to 182 days from 1 April 2023 as part of the co-operation agreement between the Labour government and Plaid Cymru to tackle the problem of second homes.

Newsletter

Related Articles

0:00
0:00
Close
UK Government Reviews Long-Term Balance Between Cost Relief, Industry Support, and Public Investment Priorities
BBC Could Receive Permanent Royal Charter Under Government Proposal
Northern Ireland Proposes End to Severe Weather Exemptions for Electricity Compensation Rules
Andy Burnham Holds Talks With UK Devolved Leaders on Regional Cooperation and Devolution
House of Lords Launches Inquiry Into Risks Facing UK Democratic Institutions
ScottishPower Renewables Plans Major Rebuild of Whitelee Wind Farm With Fewer Larger Turbines
UK and Italy Leaders Discuss Global Combat Air Programme and Future European Cooperation
UK Government Announces Six Hundred Million Pound Aerospace Investment Package at Farnborough Airshow
European Union Approves UK Participation in Ninety Billion Euro Ukraine Support Loan Framework
Rolls-Royce Warns UK Government Over Jet Engine Funding Decision and Future Manufacturing Plans
UK Inflation Falls to Two Point Six Percent in June as Fuel and Food Prices Ease
Andy Burnham Begins Premiership With Two Pound England Bus Fare Cap and Electricity Tax Cut Plan
YouGov Poll Shows Tight Competition Among UK Political Parties
Space Technology Investment Expands Through UK-US Cooperation at Farnborough Airshow
UK Opens Final India Young Professionals Scheme Ballot for Three Thousand Applicants
United Kingdom Approved for Ukraine Financial Support Initiative With EU Partners
UK and Ireland Leaders Discuss Security, Energy and Regional Cooperation
British Heart Foundation Identifies Ten UK Areas With Severe Shortages of Defibrillators
Former Southern Water Executives Charged Over Alleged Water Test Manipulation Scheme
IMF Warns UK Economic Growth Will Slow to One Percent in 2026
UK Inflation Falls to Two Point Six Percent in June as Food and Energy Costs Ease
United Kingdom Joins European Union Loan Mechanism to Support Ukraine’s Defense Needs
Prime Minister Andy Burnham Introduces Two-Pound Bus Fare Cap and Energy Tax Relief Measures Across England
Northern Ireland Secures Additional Infrastructure Funding From UK Treasury
Wales Approves Port Investment Plans to Support Green Energy Supply Chains
UK Financial Regulator Simplifies Stock Market Rules to Attract More Listings
UK Reports Decline in Small Boat Crossings Across the English Channel
UK Government Creates Emergency Support Fund for Financially Pressured Universities
Scottish Government Launches Economic Strategy Focused on Innovation and Renewable Industries
UK Expands Sustainable Farming Incentives to Support Environmental Measures
UK Government Introduces New Neighbourhood Policing Standards Across England and Wales
UK Competition Regulator Opens Review of Artificial Intelligence Foundation Models
UK Deepens Indo-Pacific Security Cooperation After Talks With Singapore and Japan
UK Announces Rail Modernisation Plan for Northern England With New Infrastructure Funding
UK Government Updates Housing Planning Rules to Accelerate Residential Construction
UK Approves Major North Sea Offshore Wind Project to Support Clean Power Goals
UK Health Service Begins Major Digital Upgrade to Cut Hospital Waiting Times
Bank of England Holds Interest Rates Steady as UK Inflation Pressures Remain Persistent
UK Universities and Industry Expand Space and Defense Research Partnerships
House of Lords Approves Social Housing Bill Amendments on Shared Ownership Rights
House of Lords Advances Civil Aviation Bill With New Passenger Protection Measures
UK Government Suspends Tariffs on Fertilizer and Food Imports to Reduce Costs
Russell Group Universities Support New UK Business Department Focused on Innovation
UK Parliament Opens Inquiry Into Transport Barriers Facing Young Jobseekers
Home Builders Federation Calls for Lower Costs as New UK Government Sets Housing Priorities
Andy Burnham Meets UK Devolved Leaders to Strengthen Regional Cooperation
Andy Burnham Holds First International Calls With Trump, Macron, and Zelenskyy
Andy Burnham Reshuffles Cabinet With John Healey Appointed Chancellor of the Exchequer
Andy Burnham Government Removes VAT From Electricity Bills to Cut Household Costs
Andy Burnham Becomes United Kingdom Prime Minister After Sir Keir Starmer Resigns
×