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Newsletter issue – November 2026
Hundreds of second home and holiday-let owners in Pembrokeshire, Wales have accumulated large council tax debts following changes to Welsh rules on holiday accommodation.
Since 2023, owners must demonstrate that their holiday let was occupied for 182 days a year to qualify for business rates. Previously, only 70 nights of bookings were required. Those who fail to meet the threshold become liable for council tax instead. The Welsh Government allowed councils to backdate the new requirements, resulting in some owners receiving retrospective council tax bills covering several years. According to council figures: 3,086 owners owed between £1k and £10k, 230 owed £10k to £20k, and 78 owed more than £20k.
There is a significant backlog of appeals with the Valuation Office Agency (VOA) from owners challenging their move from business rates to council tax. Around £2.9m of council tax arrears is linked to self-catering properties under appeal. The council leadership expressed sympathy but argued that owners had been aware of the policy changes for some time and should have known whether they met the occupancy threshold.
A proposal to ease pressure on affected owners has been postponed while the Welsh Government reviews the policy. One option being considered is reducing the letting requirement from 182 days to 154 days and providing exemptions for some small-scale holiday-let operators.
