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