London Daily

Focus on the big picture.
Monday, Jun 02, 2025

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
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
×