Pa asesiad y mae Llywodraeth Cymru wedi'i wneud o'r effaith y bydd y newidiadau arfaethedig i ddosbarthiad llety hunanarlwyo at ddibenion treth leol yn ei chael ar fusnesau gwledig sydd wedi cael eu hannog i arallgyfeirio eu model busnes?
The Welsh Government is of the view that for a property to be treated as a business for local taxation purposes, it should operate as a business for the majority of the year. The changes are intended, in part, to incentivise the greater use of such properties for business purposes and, where used to a lesser extent, the properties will be liable for council tax.
On 24 May 2022, I confirmed that the Welsh Government would proceed with the Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2022, as drafted and consulted upon. An Explanatory Memorandum and Regulatory Impact Assessment (RIA) has been published alongside the legislation. There is limited evidence available in relation to some considerations, whether pursuing change or doing nothing. The RIA includes the available evidence and demonstrates the Welsh Government’s consideration of the potential impacts of the legislation.
I have listened to the representations from self-catering operators and recognise that some farm diversification units are subject to planning conditions that prevent the properties from being occupied permanently as someone’s main residence. The Council Tax (Exceptions to Higher Amounts) (Wales) Regulations 2015 provide for an exception from a council tax premium for properties restricted by a planning condition preventing occupation for a continuous period of at least 28 days in any one‑year period. I am exploring whether amendments to these regulations are necessary, to account for any other type of planning condition that would prevent a property being used as a permanent residence. I will also be issuing revised guidance to local authorities on additional options that are available to them in the event that self-catering properties restricted by planning conditions do not meet the letting criteria.
This work is being carried out in collaboration with Siân Gwenllian MS, the Plaid Cymru designated lead member, as part of the Co-operation Agreement between the Welsh Government and Plaid Cymru.