Land Transaction Tax – Welsh Holiday Let?

Land Transaction Tax – Welsh Holiday Let?

11:18 AM, 29th March 2021, About 3 years ago 5

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I’m interested in purchasing a B&B in Wales to turn into a Holiday Let. The process is wrought with complications I would be happy to share whilst I learn if anyone is interested. For now, I am hoping someone can advise me on the matter of Land Tax.

If I successfully obtain planning permission for a change of use from serviced accommodation (use class C1) to a holiday let (use class C3) before I complete the purchase, would I be subject to land tax at the 2nd home rate for residential use or would this be classed as a commercial purchase? The residential land tax for 2nd homes would be approximately £34,000 whereas the commercial would be half that figure!

It is worth noting that whilst I am trying to change the use class to c3 which is also the use class for residential there will be planning conditions attached to this which will prevent the use of the property ever being used as a residence/main home – holiday let only. There will be a maximum number of nights any one person can stay at the premises which is approximately 30 days.

Your thoughts/experience would be most welcome on this matter.



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Jerry stone

12:18 PM, 29th March 2021, About 3 years ago

I think that you could challenge that condition of the Holiday let at appeal.

It is vitally unenforceable and C3 is C3.

Just because you have the permission in place it won't be evoked until you have

finished the works so I don't see how it can be residential when you buy it.

When you have done the conversion then you can register it for Business Rates and claim small business rates relief.

Joe Robertson

14:59 PM, 29th March 2021, About 3 years ago

That’s for your input Jerry.

Have you heard of cases where this kind of appeal has been successful? I guess it simply comes down to the local councils position on the matter.

I may have to consider completing the works before I own the property which I think could be achievable if I let them get the summer earnings out the way first.

Do you know if I could register for business rates immediately or would I have to operate with council tax for a year or so first?

Jerry stone

15:10 PM, 29th March 2021, About 3 years ago

Reply to the comment left by Joe Robertson at 29/03/2021 - 14:59
You can register for Business rates immediately.

In reference to your question on appeals yes I have won at least one.

send me a email or message with the address and council and I'll have look if you would like?

Michael Bond

17:56 PM, 30th March 2021, About 3 years ago

I have certainly heard of cases in which planning officials have tried to enforce a condition on FHLs ("holiday cottages") that they might not be used for permanent occupation, or occupied for more than 30 days by the same tenant (which rules "Winter Lets" out of a business plan). These have been overruled on appeal -- but that was in England.

Joe Robertson

18:01 PM, 30th March 2021, About 3 years ago

Reply to the comment left by Michael Bond at 30/03/2021 - 17:56
It’s an interesting one and I believe they only way I am going to find out is by going for it. I think there’s good argument for changing to holiday let and eventually turning to residential in a number of years.

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