In recent years, the rise in holiday lets across Wales has led to a range of new rules and regulations, aiming to balance the growth in tourism with the needs of local communities.
If you own or are thinking of buying a holiday let in Wales, the regulatory landscape has changed significantly in recent years, and continues to evolve. From business rates thresholds to council tax premiums and a brand new visitor levy, keeping on top of the rules is essential to running a compliant and profitable property.
Wales remains one of the UK’s most popular holiday destinations, and the Welsh Government is keen to support sustainable tourism while tackling issues like housing affordability and community stability.
This guide covers everything you need to know as of June 2026, with clear explanations of what has changed, what is coming next, and what you should do now…
Holiday Let Business Rates vs Council Tax in Wales
One of the most important decisions for any holiday let owner in Wales is whether your property qualifies for business rates or falls under council tax. Getting this right can make a significant financial difference, particularly as council tax premiums on second homes have risen sharply across Wales.
The current qualifying thresholds for holiday lets in Wales
To qualify for business rates rather than council tax, your property must meet both of the following criteria in any 12-month period:
- Available to let for at least 252 days per year
- Actually let for at least 182 days per year
These thresholds were increased in April 2023 (up from 140 days available and 70 days actually let) and represent a genuine test of commercial letting activity.
Since 1 April 2023, holiday lets in Wales that are genuinely run as commercial self-catering businesses must meet stricter criteria to be assessed for business rates rather than council tax. To qualify under the current rules, a property must:
- Be available to let commercially for at least 252 days in the previous 12 months;
- Be actually let commercially for at least 182 days in the same period;
- And the owner must intend to make it available for at least 252 days in the next 12 months.
These tests are assessed by the Valuation Office Agency (VOA). If a property doesn’t meet them, it will instead be liable for council tax, which in many areas includes second-home or under-used home premiums that can increase the bill significantly.
Before April 2023
Old thresholds
Available to let
140
days per year
Actually let
70
days per year
From April 2023
Current thresholds
Available to let
252
days per year
Actually let
182
days per year
Both thresholds must be met to qualify for business rates instead of council tax
New 2026 changes to the 182-day holiday let rule in Wales
Following lobbying by the industry, the Welsh Government introduced three helpful changes from April 2026:
1. Averaging
If you miss the 182-day actual letting target in a single year due to exceptional circumstances, you may still qualify for business rates if your average over the previous two to three years meets the threshold.
2. Charity days
Up to 14 days of stays donated free to a registered charity will count towards your 182-day total, whatever time of year they are donated.
3. No premium in your first year off business rates (from April 2027)
If your property falls below the 182-day threshold and moves onto council tax, the second home council tax premium will not apply in the first year. This gives owners breathing room to recover occupancy before facing higher bills.
Keep detailed records of all bookings and availability — accurate records are essential if you ever need to demonstrate compliance or claim averaging relief.
Could the 182-day holiday let threshold in Wales be lowered?
Plaid Cymru won the Senedd election in May 2026 and have committed to reviewing the 182-day threshold, with a view to potentially lowering it.
They have also mentioned possible exemptions for properties that cannot be used as a primary home due to planning restrictions. This is a positive development for holiday let owners across Wales — watch this space.
💡 For a more comprehensive look head to our Guide to Furnished Holiday Let Tax and Business Rates in Wales.
Want help maximising your occupancy? Talk to our lettings team today!
Council Tax Premiums on Second Homes and Holiday Lets in North Wales
If your property does not meet the business rates thresholds, it will be liable for council tax — including any premium your local council has chosen to apply.
Welsh councils can currently charge a premium of up to 300% above the standard council tax rate on second homes and holiday lets that do not qualify as businesses. Each council sets its own rate — and North Wales councils are among the highest in Wales.
Current second home council tax premium rates across North Wales (as of June 2026):
| Council |
Premium |
Total council tax |
| Gwynedd |
+150% |
250% of standard rate |
| Conwy |
+150% |
250% of standard rate |
| Denbighshire |
+150% |
250% of standard rate |
| Anglesey |
+100% |
200% of standard rate |
| Flintshire |
+100% |
200% of standard rate |
| Wrexham |
+50% |
150% of standard rate |
Rates apply to second homes not qualifying for business rates. Always check with your local council for the most current figures. Last updated June 2026.
Not sure which rate applies to you? Get in touch with our team today
💡 For continued reading we’d recommend heading to the Welsh Government’s article on How Tax Works for Second Homes.
The Abolition of the Furnished Holiday Let Tax Regime: What North Wales Owners Need to Know
This is one of the biggest changes to affect holiday let owners in recent years — and it applies across the whole of the UK, not just Wales.
The Furnished Holiday Let (FHL) tax regime — which gave qualifying holiday lets a range of tax advantages over standard buy-to-let properties — was abolished from 6 April 2025 for Income Tax and Capital Gains Tax purposes.
What has been removed from the FHL tax regime
- Capital allowances on furniture, fixtures and equipment
- Favourable Capital Gains Tax reliefs (Business Asset Disposal Relief and Rollover Relief)
- The ability to count FHL income as earnings for pension contribution purposes
- Loss relief rules specific to FHLs
What the FHL abolition means for holiday let owners in Wales
Holiday let income is now taxed in the same way as standard rental income. If you were benefiting from the FHL regime, your tax position may have changed materially from April 2025 onwards.
|
Before April 2025
FHL regime
|
From April 2025
Standard rental income rules
|
✓Capital allowances
Claim on furniture, fixtures & equipment |
✗No capital allowances
Furniture & fittings no longer qualify |
✓Business Asset Disposal Relief
Favourable CGT rate on sale (10%) |
✗Standard CGT rates apply
No preferential rate on disposal |
✓Rollover Relief
Defer CGT by reinvesting in another business asset |
✗No Rollover Relief
CGT due in full on sale proceeds |
✓Pension contributions
FHL income counted as earnings for pension purposes |
✗Not pensionable income
Rental income does not count toward pension contributions |
✓Loss relief
Losses could be offset against FHL income only |
✗Standard loss rules
Losses treated as ordinary property income losses |
| Abolished from 6 April 2025 |
Now applies to all holiday lets in the UK |
This is a summary only and does not constitute tax advice. Speak to a qualified accountant for guidance specific to your circumstances.
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ⓘ This is a significant change and the right course of action will depend on your individual circumstances. We strongly recommend speaking to a qualified accountant or tax adviser if you have not already done so.
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The Wales Visitor Levy: What Holiday Let Owners in North Wales Need to Know
The visitor levy — sometimes called a tourism tax — became law in September 2025. However, whether it will actually affect you depends on where your property is located, as each council must choose independently whether to introduce it.
Key facts about the Wales visitor levy
- The Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 received Royal Assent on 18 September 2025.
- The levy is set at £1.30 per person per night (plus VAT) for holiday cottages and self-catering properties.
- Under-18s in shared accommodation are exempt.
- Councils must opt in — having first consulted, then decided, then given 12 months’ notice.
- The earliest any council can introduce the levy is April 2027.
Which councils in North Wales are introducing the visitor levy?
Confirmed yes: Cardiff has committed to introducing the levy on bookings made from 28 September 2026 for stays from 1 April 2027.
Currently consulting (until mid-July 2026): Gwynedd, Conwy and Anglesey are each consulting the public on whether to introduce it. These are genuine consultations — you do not have to live in these areas to respond, and the outcome may influence other councils.
Confirmed no (or no current plans): Pembrokeshire, Wrexham, Rhondda Cynon Taf, Carmarthenshire, Neath Port Talbot and Caerphilly have said they will not introduce the levy. Vale of Glamorgan, Swansea and Newport have no current plans to do so. Powys is deferring its decision until more data is available.
What you need to do as a holiday let owner in Wales
|
☑ Visitor levy — what you need to do
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|
1
|
Register with the WRA — from 1 October 2026Registration opens 1 October 2026 with a deadline of 31 March 2027. It is free, takes around five minutes and is a legal requirement. You cannot opt out of registration even if your local council does not introduce the levy. |
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|
2
|
Monitor your local council’s announcementsCouncils must give 12 months’ notice before introducing the levy — watch for official announcements from your local authority. |
|
|
3
|
Plan your guest communicationsConsider how you will communicate the levy to guests once it comes into effect in your area. |
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ⓘ Earliest a levy can be introduced by any council is April 2027.
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Holiday Let Registration and Licensing in Wales: Key Dates for North Wales Owners
Mandatory holiday let registration in Wales — from 1 October 2026
The Welsh Government is introducing a mandatory national registration scheme for all visitor accommodation in Wales, including holiday lets, hotels, B&Bs and campsites. The scheme opens on 1 October 2026 with a registration deadline of 31 March 2027.
Registration is free, takes around five minutes and asks for basic information including your contact details, accommodation address, type of accommodation and capacity. There is no approval process — you simply register and continue operating. A public register will be maintained but will not include personal names or home addresses.
Holiday let licensing scheme in Wales — from 2029
Separate to registration, the Welsh Government is also introducing a licensing scheme for holiday lets from 2029. The main requirements as currently proposed are:
- Completion of a fire risk assessment
- Smoke and carbon monoxide alarms in place
- A valid gas safety certificate
- Electrical safety compliance
- Public liability insurance
- Your registration number displayed on your property listing
Provisional licences will be available, allowing you to apply before all measures are in place — as long as guests do not stay until they are. The scheme is expected to be relatively simple and low-cost, building on the existing registration scheme rather than being a separate process.
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ⓘ Most of the licensing requirements reflect health and safety obligations that already apply to holiday let owners. If you are already meeting your legal obligations, the additional burden should be minimal.
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Article 4 Directions and Planning Permission for Holiday Lets in North Wales
Gwynedd Council introduced an Article 4 Direction in September 2024 requiring planning permission to change a property’s use between a main residence, second home or holiday let. The Direction was quashed by the High Court in November 2025 and a subsequent appeal was refused in February 2026. It is no longer in force.
At present, planning permission is not required to change use between these categories in Gwynedd outside Eryri National Park. However, Gwynedd Council is expected to introduce a new Direction in due course — owners and buyers should keep an eye on planning announcements.
Eryri National Park — different rules apply
A separate Article 4 Direction for Eryri came into effect on 1 June 2025. If your property was already operating as a holiday let before that date, you are not affected. However, be careful not to use your property as a second home or main residence, as this could mean needing planning permission to switch back to a holiday let.
If you are buying a property in Eryri, always check its current use class and take advice from a planning professional before proceeding.
💡 For more information head to our guide: Do You Need Planning Permission for a Holiday Let in North Wales?
For the very latest, visit Gwynedd Council’s website or speak with a planning professional.
Health and Safety Requirements for Holiday Lets in North Wales
As a holiday let owner you are legally responsible for the safety of your guests. These obligations apply now — not just from 2029 when the licensing scheme comes into force. The key requirements are:
| Gas safety |
An annual gas safety check by a Gas Safe registered engineer is a legal requirement for all properties with gas appliances. You must provide guests with a copy of the certificate. |
| Electrical safety |
There is no legal requirement for periodic electrical inspections for holiday lets in Wales, but regular checks by a qualified electrician are strongly recommended. All appliances should be PAT tested. |
| Fire safety |
A fire risk assessment is required under the Regulatory Reform (Fire Safety) Order 2005. Smoke alarms and carbon monoxide detectors must be fitted and regularly tested. |
| Legionella |
Owners must carry out a Legionella risk assessment and manage any risks identified, particularly in relation to water systems and hot water storage. |
| Energy Performance Certificate |
A valid EPC is required for all holiday lets marketed to the public. The certificate must be available to prospective guests. |
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ⓘ Keeping your health and safety documents up to date now will also put you in good shape for the 2029 licensing scheme, which requires the same core certificates.
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Questions about running your holiday let? Talk to our team today
Holiday Let Insurance in North Wales: What Cover Do You Need?
Standard home insurance does not cover holiday lets — and many owners are underinsured without realising it. Make sure you have the right policies in place before your first guest arrives.
- Public liability insurance — covers legal costs and compensation claims if a guest is injured or their belongings are damaged during their stay. This is one of the most important policies for any holiday let owner.
- Buildings and contents insurance — standard home insurance will not cover commercial letting activity. You need a dedicated policy that includes guest use, accidental damage and malicious damage by tenants.
- Employer’s liability insurance — a legal requirement if you employ anyone to help manage or maintain the property, including cleaners and maintenance staff.
- Loss of income cover — protects your rental income if the property becomes uninhabitable due to fire, flooding or other damage. Particularly important for owners who rely on letting income.
💡 For a full guide to getting the right cover read our Complete Guide to Holiday Home Insurance.
North Wales Holiday Let Owner Checklist: Staying Compliant in 2026
The holiday let landscape in Wales is more complex than it was even two or three years ago. Here is a practical checklist to help you stay on top of your obligations:
✅ Check your letting records — confirm you are meeting or on track to meet the 252/182-day thresholds for business rates.
✅ Review your tax position — the FHL regime was abolished in April 2025. Speak to your accountant if you have not already done so.
✅ Check your council tax premium rate — confirm whether your property qualifies for business rates or is liable for council tax in your area.
✅ Prepare to register with the WRA — registration opens 1 October 2026 with a deadline of 31 March 2027. Free, quick and legally required for all overnight accommodation providers.
✅ Monitor your council’s visitor levy position — councils must give 12 months’ notice before introducing the levy. Don’t get caught out.
✅ Gwynedd and Eryri owners: check your planning position — Gwynedd’s Article 4 Direction has been quashed but a new one is expected. The Eryri Direction is active for properties that changed use after 1 June 2025.
✅ Keep your health and safety documents up to date — gas safety certificate, fire risk assessment, electrical checks, Legionella assessment and EPC should all be current.
✅ Check your insurance cover — make sure you have dedicated holiday let insurance including public liability, buildings and contents and loss of income cover.
✅ Prepare for licensing from 2029 — the health and safety documents above will form the basis of your licence application.
✅ Stay informed — regulations are continuing to evolve and keeping up to date is one of the most important things you can do as a holiday let owner.
💡 Thinking of buying a holiday let? Head to our blog all about the Costs of Owning and Running a Holiday Let, to ensure that you’re making an informed decision.
Wales is Still a Brilliant Place to Own a Holiday Let
The rules have changed, but the opportunity hasn’t. At Menai Holiday Cottages we know North Wales inside out — from the beaches of Anglesey and the Llŷn Peninsula to the mountains of Eryri and the historic towns of the North Wales coast. Demand for quality self-catering accommodation across Wales remains as strong as ever, and owners who stay informed and manage their properties as genuine businesses are well placed to thrive.
Whether you’re an existing owner or a potential buyer, our guides cover everything from decorating your holiday home to understanding holiday home insurance. Get in touch with our team — we’d love to help.
For more information about letting your cottage with us, complete the form below to request contact from our team. You’ll also receive a copy of our FREE Owner Guide.
Please note: The information in this article was accurate at the time of writing based on our research. Rules and regulations change frequently — please check with your local council and relevant authorities for the most current information. Nothing in this article constitutes financial, tax or legal advice. Please consult your own professional adviser for guidance specific to your circumstances. As a holiday letting owner, you are responsible for compliance with all applicable health and safety laws, regulations and insurance requirements.
