Welsh holiday home tax rules could be eased after backlash

A government consultation will look at “whether the 182-day threshold is set at the right level and what impact a modest reduction might have”.

It also proposes five new possible exemptions for accommodation that cannot be used as permanent homes, including properties on owners’ farms.

Jones said: “I have heard representations from a number of businesses that are making meaningful contributions to their local economies but are unable to meet the current threshold.

“This consultation will help us find a solution that works better for everyone, including businesses, local authorities and local areas.

“I am committed to getting the balance right – keeping homes in our communities while giving tourism the support it needs to thrive.”

PASC welcomed the review, but said the occupancy levels being considered by ministers could still be too high.

Nicky Williamson, the association’s Welsh policy adviser, urged “every operator to explain how the current rules affect their business and why a realistic threshold is essential if Welsh tourism is to remain competitive”.

“Our objective has never been to remove the distinction between genuine holiday businesses and second homes,” she said.

“It is to ensure that viable tourism businesses are not penalised by an occupancy requirement that many simply cannot achieve.”

Reform UK Wales said the tourism industry needed more detail on what a proposed “modest reduction” in the threshold would mean in practice and whether it would provide meaningful support for the sector.

Shadow minister Louise Emery said: “Plaid Cymru’s proposals of more exemptions could mean more bureaucracy.

“Rather than just tinkering around the edges, a more ambitious plan to reduce the threshold needs implementing.”