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, the new visitor accommodation registration scheme and the visitor levy, keeping on top of the rules is essential to running a compliant holiday let.
Wales remains a popular holiday destination, and the Welsh Government is introducing changes around visitor accommodation, taxation and regulation while also addressing issues such as housing affordability and community stability.
This guide covers the position as of October 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 across Wales.
The current qualifying thresholds
To be considered for business rates rather than council tax, a self-catering property must meet a number of conditions. The property must:
- Be available to let commercially as self-catering accommodation for short periods totalling at least 252 days in the 12 months before the date being considered;
- Have been actually let commercially for at least 182 days during that period;
- Be intended to be available for commercial letting for at least 252 days in the following 12-month period; and
- Meet the relevant commerciality requirements, with the ratepayer’s interest in the property enabling them to let it.
These thresholds have applied since 1 April 2023. If a property does not meet them, it will normally be treated as domestic property and liable for council tax instead.
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
Changes to the 182-day rule from April 2026
From April 2026, two changes give some holiday let owners more flexibility where the 182-day letting criterion has not been met:
1. Averaging across previous years. Averaging the days let over the previous two or three years can be used to meet the 182-day threshold.
2. Up to 14 charity days. Up to 14 days donated for free to a registered charity count towards the 182-day threshold, whatever time of year they are donated.
Keep accurate records of bookings, availability and any charitable stays, as these may be needed to demonstrate compliance.
Small business rates relief
Holiday lets on business rates may be eligible for small business rates relief. Councils report full relief for properties with a rateable value of up to £6,000, with relief tapering to zero between £6,001 and £12,000. Check the current scheme with your local council, as the rules can change.
Business rates changes from April 2026
From April 2026, business rates changed for all types of property, not just holiday lets, including the revaluation of each property. Check how the change affects your own bill.
Consultation on the 182-day threshold: closes 23 October 2026
On 31 July 2026 the Welsh Government launched a 12-week consultation on the criteria used to classify self-catering properties for local tax purposes, including the 182-day letting threshold. It closes on 23 October 2026. The consultation document indicates the threshold might be lowered to around 154 days, but no change has been decided.
The consultation also proposes five exemptions for self-catering properties that could not reasonably be used as a permanent home. These cover properties that are part of a wider business, large multi-unit properties, properties under a planning restriction, properties within the grounds of the owner’s home, and properties on the owner’s farm. Anyone can respond, and you are free to answer as many of the questions as you wish.
Want help maximising your occupancy? Talk to our lettings team today
Council tax premiums on second homes and holiday lets in Wales
If your property does not meet the business rates criteria, it will normally be liable for council tax, including any premium your local council has chosen to apply.
Welsh councils can now set a council tax premium of up to 300% on second homes and holiday lets (previously up to 100%). Each council decides whether to apply a premium and at what rate.
Second-home council tax premiums for 2026/27 in North Wales:
| Council |
Premium |
Total council tax |
| Gwynedd |
+150% |
2.5 x council tax |
| Conwy |
+150% |
2.5 x council tax |
| Denbighshire |
+150% |
2.5 x council tax |
| Anglesey |
+100% |
2 x council tax |
| Flintshire |
+100% |
2 x council tax |
| Wrexham |
+50% |
1.5 x council tax |
Premiums are for the 2026/27 financial year. Council tax policies can change, so always check directly with your local authority.
The Welsh Government plans to stop the council tax premiums applying in the first year to properties that move from business rates to council tax. This has not yet been confirmed.
Not sure which rate applies to you? Get in touch with our team today
💡 For further reading, see the Welsh Government’s guidance on council tax for second homes and empty properties.
The abolition of the furnished holiday let tax regime: what 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 residential property businesses, was abolished from 6 April 2025 for Income Tax and Capital Gains Tax purposes.
What has changed following the FHL abolition?
The former FHL tax treatment included several advantages which are no longer available under the special regime, including:
- Special capital allowances treatment for furniture, fixtures and equipment;
- Favourable Capital Gains Tax reliefs associated with qualifying FHL businesses, including Business Asset Disposal Relief and Rollover Relief;
- The ability for qualifying FHL income to count as relevant earnings for pension contribution purposes; and
- Special loss relief rules applying to FHL businesses.
There are transitional provisions for some aspects of the former regime, so the exact position can depend on 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. This is a summary only and does not constitute tax advice.
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The Wales visitor levy
Wales has introduced a per-person, per-night visitor levy. It only applies in areas where the local council decides to introduce it, and councils must follow a set process before doing so.
Key facts
- The levy is £1.30 per person per night, plus VAT. It applies to all visitor accommodation where it is introduced, including hotels, campsites and holiday lets.
- Councils must opt in. They must first consult, then decide, and then give at least 12 months’ notice.
- The levy does not apply to bookings made before the council’s decision to introduce it.
- The levy is charged at the end of the stay. If a stay is cancelled, the levy must be refunded.
- As the owner, you are responsible for handing the levy proceeds to the Welsh Revenue Authority.
- Proceeds are spent in the council area where they are raised, on improving facilities and services for visitors.
If you are VAT registered and pass the levy on to guests, VAT may also apply to the levy.
Timing
Cardiff is the only council that has so far confirmed it will introduce the levy. It will apply to bookings made from 28 September 2026 for stays from 1 April 2027. For any other council that introduces the levy, it would not apply to stays before 1 October 2027.
Where North Wales councils stand
Anglesey: Consulted on the levy until 13 July 2026. In September 2026 the council’s executive recommended that no levy be introduced. The full council was due to decide on 24 September 2026. Check the council’s published decision before relying on this.
Conwy: Consulted on the levy. In September 2026 councillors agreed to defer a decision while further evidence is considered.
Gwynedd: Consulted on the levy and received a large number of responses. The council has not yet made a final decision.
Wrexham: Has said it will not introduce the levy.
For Denbighshire and Flintshire, check directly with the council before making assumptions about whether a levy will apply.
What you should do
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☑ Visitor levy: what you need to do
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1. Monitor your local council’s announcements.
A levy can only take effect after the council has followed the consultation and notice requirements. |
2. Prepare your booking systems now.
If a levy is introduced in your area, you will need to account for it on qualifying stays and pay it to the Welsh Revenue Authority. |
Holiday let registration and licensing in Wales: key dates
Mandatory registration: now open
Registration with the Welsh Revenue Authority is now open. It is a mandatory national register of all visitor accommodation in Wales, including campsites, hotels, B&Bs and holiday lets, and is primarily intended to help councils that introduce the visitor levy to collect it.
- Deadline: you must register by 31 March 2027, whether or not your council introduces a levy.
- Cost: registration is free and takes around 5 minutes.
- Approval: there is no approval process. You can keep operating once you have registered.
- Penalties: if you do not register by 31 March 2027, you may have to pay a penalty.
- Changes: if your details change, update them within 30 days.
You will need to provide basic information, including your contact details, company and charity numbers (if applicable), trading name (if applicable), accommodation address, the types of accommodation you offer, how many people can stay, and when the accommodation is usually open for bookings. You will then be given a registration number, which must be shown on your property advert.
The public register will not show an individual’s name (unless it forms part of the business name) or the address of an individual’s sole or main residence (unless it is the address of the accommodation itself).
Licensing: expected from 2029
Separate from registration, the Welsh Government is introducing a licensing scheme for holiday lets from 2029. The main proposals as they stand are:
- Some types of self-catering accommodation are not proposed to be included, such as aparthotels and already licensed caravan sites.
- Health and safety requirements, but no further than those already required: a fire risk assessment, smoke and carbon monoxide alarms, a gas safety certificate, electrical safety, and public liability insurance.
- A registration number for each premises, shown on your property advert.
- A simple additional application to the Wales-wide registration scheme, rather than a separate scheme, with a low fee expected.
- Provisional licences, so you can apply before all health and safety measures are in place, as long as no guests stay until they are.
Details will be set over the coming year or two. There is no specific action to take yet. To prepare, you can store your health and safety documents in one place and track when they are due for renewal.
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ⓘ Registration and licensing are separate requirements. Registration is already open; licensing is expected to follow from 2029, with detailed requirements still being developed.
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Article 4 directions and planning permission for holiday lets in Wales
Since 20 October 2022, main homes, second homes and holiday lets have been in different planning use classes. A property can move freely between them under permitted development, unless a council has introduced an Article 4 direction.
An Article 4 direction requires planning permission for a change from a main home to a second home or holiday let, where this amounts to a “material change of use”. Whether this applies depends on the property and the local area, for example the number of cars, the number of people staying, and arrival and departure times. Planning permission stays with the property when it changes hands.
Gwynedd: Gwynedd’s Article 4 direction was quashed by the High Court in 2025 and is no longer in force. The council’s application to appeal was refused in February 2026. The court advised the council to consider proportionality before making any new direction.
Eryri National Park: A separate Article 4 direction came into effect on 1 June 2025. It only applies to properties that become a second home or holiday let after that date. Holiday lets already operating in Eryri before then are not affected, whether operated by the current owner or a previous one.
If you run an existing holiday let in Eryri, be careful about using it as a second home or main home. Doing so could mean you need planning permission to return it to holiday let use.
Other councils: Conwy Council cited staffing and cost as reasons for not introducing an Article 4 direction. Most councils were waiting to see how the Gwynedd direction would work before deciding, and are likely to be hesitant given the court’s decision. Welsh ministers have said an Article 4 direction should only be made on the basis of robust evidence and data.
Planning and local taxation rules operate independently, so meeting the business rates criteria does not automatically mean planning permission is or is not required. Always check the planning position before buying a property or changing its use.
💡 For more information, read our guide: Do You Need Planning Permission for a Holiday Let in North Wales?
For the latest position, visit Gwynedd Council’s website or speak with a planning professional.
Health and safety requirements for holiday lets in Wales
Holiday let owners and operators have responsibilities to protect guests and manage health and safety risks. The exact legal requirements depend on the property and the facilities provided.
Key areas to consider include:
| Gas safety |
Where gas appliances are provided, they must be safely maintained and appropriate gas safety requirements followed. A Gas Safe registered engineer should be used for gas safety work. |
| Electrical safety |
Electrical installations and appliances should be kept safe and properly maintained. Regular inspection and testing by a suitably qualified electrician is recommended, with records kept of relevant checks. |
| Fire safety |
A suitable fire safety risk assessment should be carried out and appropriate fire safety measures put in place. Smoke alarms and carbon monoxide alarms should be provided where required and kept in working order. |
| Legionella |
Holiday let owners should assess the risk of Legionella associated with their water systems and take appropriate steps to control any risks identified, particularly where water may be stored or become stagnant. |
| Energy Performance Certificate |
An EPC may be required for a furnished holiday let where the relevant conditions apply, including where it is let for short periods and the occupier is responsible for the energy costs. Check the current EPC rules for your property. |
It is sensible to keep certificates, risk assessments and maintenance records organised and up to date. These documents may also be relevant to the future licensing requirements for visitor accommodation.
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ⓘ Health and safety requirements apply now. The future licensing scheme will add requirements and evidence requirements as the regulations are brought into force.
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Questions about running your holiday let? Talk to our team today
Holiday let insurance in Wales: what cover do you need?
Standard home insurance is not generally designed for commercial holiday letting, so make sure your insurer knows how the property is being used and that you have appropriate cover.
Depending on your circumstances, you may want to consider:
- Public liability insurance: cover for claims arising from injury to guests or damage to their belongings. This is also expected to be a requirement of future visitor accommodation licensing.
- Buildings and contents insurance: specialist cover for a property used as holiday accommodation, including appropriate cover for guest use and accidental damage.
- Employer’s liability insurance: generally a legal requirement if you employ anyone, subject to the relevant exemptions.
- Loss of income cover: optional cover that may help protect rental income if the property becomes uninhabitable because of an insured event such as fire or flooding.
Always check the terms, exclusions and requirements of your policy and tell your insurer how the property is being used.
💡 For a full guide, read our Complete Guide to Holiday Home Insurance.
Holiday let owner checklist: staying compliant in 2026
The holiday let landscape in Wales is more complex than it was a few years ago. Here is a practical checklist:
✅ Respond to the business rates consultation: it closes on 23 October 2026, and you are free to answer as many questions as you wish.
✅ Check your letting records: make sure you understand whether your property meets the 252-day availability and 182-day letting criteria for business rates, including the averaging and charity-day options from April 2026.
✅ Keep evidence of bookings and availability: accurate records can be important when demonstrating compliance.
✅ Review your tax position: the FHL regime was abolished in April 2025. Speak to your accountant if you have not already reviewed how this affects you.
✅ Check your council tax position: if your property does not qualify for business rates, check whether your local council applies a second-home premium and at what rate.
✅ Register: registration is now open. You must register by 31 March 2027. Registration is free.
✅ Monitor your council’s visitor levy position: a levy can only take effect after the council has followed the consultation and notice process.
✅ Check your planning position: particularly if you are buying a property or changing how an existing property is used. Eryri has a separate Article 4 direction.
✅ Keep health and safety documents up to date: including gas, electrical, fire safety, water system and EPC records.
✅ Check your insurance cover: make sure your insurer knows the property is being used as holiday accommodation.
✅ Prepare for future licensing: licensing is expected from 2029, with detailed requirements still to be set.
💡 Thinking of buying a holiday let? Read our guide to the costs of owning and running a holiday let.
Holiday let regulations in Wales: frequently asked questions
How many days does a holiday let need to be available to qualify for business rates in Wales?
A self-catering holiday let must generally be available for commercial letting for at least 252 days in the previous 12 months, and be intended to be available for at least 252 days in the following 12 months, alongside the other business rates criteria.
How many days does a holiday let need to be let to qualify for business rates?
The current letting criterion is 182 days in the relevant previous 12-month period. From April 2026, averaging over the previous two or three years can be used, and up to 14 days donated free to a registered charity count towards the threshold. The Welsh Government’s consultation, open until 23 October 2026, suggests the threshold could fall to around 154 days, but no change has been decided.
Do I need to register my holiday let in Wales?
Yes. Registration is now open. You must register by 31 March 2027, whether or not your council introduces a levy. Registration is free, and if you do not register by the deadline you may have to pay a penalty.
When will holiday let licensing start in Wales?
Licensing is expected from around 2029. The detailed requirements will be set through regulations and guidance.
Do I need planning permission to run a holiday let in North Wales?
It depends on the property and its existing use. Eryri National Park has an Article 4 direction, in force from 1 June 2025, which applies to properties becoming a second home or holiday let after that date. Gwynedd’s Article 4 direction was quashed by the High Court in 2025 and is no longer in force.
Has the furnished holiday let tax regime been abolished?
Yes. The special furnished holiday let tax regime was abolished from 6 April 2025 for Income Tax and Capital Gains Tax purposes. Holiday let income is now generally dealt with under the ordinary property income rules, subject to transitional provisions.
Will I have to pay the Wales visitor levy?
Not necessarily. The levy only applies where a council has decided to introduce it, and councils must follow a consultation and notice process first. Where it applies, the rate is £1.30 per person per night, plus VAT. Cardiff is the only council that has so far confirmed it will introduce a levy, for stays from 1 April 2027. Conwy has deferred its decision, Anglesey’s executive has recommended against a levy, and Gwynedd has not yet made a final decision.
What council tax premium could apply to a second home in North Wales?
This depends on the local council. For 2026/27, premiums among the six North Wales councils listed in this guide range from 50% to 150%. Welsh councils can set a premium of up to 300%.
Wales is still a brilliant place to own a holiday let
The rules have changed, but Wales remains an attractive destination for holiday accommodation. At Menai Holidays 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.
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 regulatory information in this article is based on the Sykes information sheet “Wales holiday lets: What’s the Latest”, September 2026, and was checked against public sources on 19 October 2026 for the visitor levy, registration (gov.wales, updated 8 October 2026), the business rates consultation (gov.wales, 31 July 2026), small business rates relief (council sources), and Gwynedd’s Article 4 direction. Council levy positions may change quickly. It is intended as a general guide only.
The FHL section relies on tax adviser commentary and should be checked against HMRC guidance. Rules and regulations can change frequently, and local council policies may differ. Nothing in this article constitutes financial, tax, planning or legal advice. Please check with the Welsh Government, Welsh Revenue Authority, Valuation Office, your local council or a suitably qualified professional for advice specific to your circumstances.
