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The Welsh Government is considering changing tax rules for self-catering holiday let owners.

Since April 2023, self-catering properties must be available for 252 days, and let for 182 days, each year to pay non-domestic rates instead of council tax.

The rules were brought in to ensure property owners make a fair contribution to their local community, the Welsh Government said.

A consultation has now been launched to seek views on two key changes to the way these rules are applied, with a view to providing more stability to the sector.

The first change would be to allow holiday let owners to use an average of 182 days let over several years. This change would mean those who narrowly miss the 182-day threshold in the latest year would remain on non-domestic rates if they had achieved that target on average over two or three previous years.

The second change would allow 14 days of free holidays donated to charity count towards the 182-day target.

The consultation is also asking whether councils should consider giving businesses more time to adjust, such as a 12-month grace period, before owners may have to pay higher council tax rates when they move from non-domestic to domestic classification.

Mark Drakeford, who is now the Welsh Government’s cabinet secretary for finance, said: “Tourism makes an important contribution to the Welsh economy and to Welsh life. Wales has so much to offer, and we want to ensure we realise that potential in a way that achieves a balance between our communities, businesses, landscapes and visitors.”

The former First Minister continued: “We work closely with tourism and hospitality businesses to help address the challenges they face, while ensuring everyone makes a fair contribution towards local economies and funding public services.

“While most holiday let owners are already meeting the new rules brought in from 2023, with 60% of properties meeting the letting criteria, we have listened to those working in the sector and are proposing small changes to the current rules to support them.”

The consultation is open until 20 November.