The Welsh Government has launched a 12-week consultation on changes to the criteria used to classify self-catering properties for local tax purposes, including a review of the 182-day letting threshold.

Self-catering properties may be subject to non-domestic rates rather than council tax, but only if they meet certain letting criteria.

Since April 2023, this has required that a property is available to let for at least 252 days and actually let for at least 182 days in the previous year.

The consultation will explore whether the 182-day threshold is set at the right level and what impact a modest reduction might have.

In addition, five new exemptions are proposed for self-catering properties that could not reasonably be used as a permanent home.

These could cover properties which are part of a wider business, large multi-unit properties, properties subject to a relevant planning restriction, properties within the curtilage of the owner's home, and properties on the owner's farm.

Recent data from the Valuation Office Agency shows the number of self-catering properties registered in Wales has fallen significantly since the introduction of the new threshold.

Cabinet Minister for Finance, Elin Jones said: "Our manifesto included a commitment to keep the 182-day letting threshold under review and create clear and reasonable new exemptions where self-catering accommodation would not qualify as a private home.

"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."

The consultation will run from the 31 July until 23 October.