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The Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2022

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EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends section 66 of the Local Government Finance Act 1988 (“the 1988 Act”), which defines domestic property for the purposes of Part 3 (non-domestic rating) of that Act.

Section 66(2BB) of the 1988 Act sets out the circumstances in which a building or a self-contained part of a building which is commercially let for short periods as self-catering accommodation (“the accommodation”), is prevented from being considered as domestic property. Those circumstances include specification of the number of days for which the accommodation has been available for letting, or is intended to be available for letting, so as to prevent it from being considered as domestic property.

Article 2(2) of this Order amends the number of days required to meet the circumstances set out in section 66(2BB) so that—

(a)the requirement to intend to let the accommodation for short periods totalling 140 days or more in the year following the day of assessment, is increased to 252 days or more,

(b)the requirement to have made the accommodation available for let for short periods totalling 140 days or more in the year prior to the day of assessment, is increased to 252 days or more, and

(c)the requirement that the short periods for which the accommodation was, or for the short periods for which the accommodation and other buildings or self-contained parts of those other buildings at the same location as or in very close proximity to the accommodation were, actually let as self-catering accommodation in the year prior to the day of assessment amounting to at least 70 days, is increased to at least 182 days.

Article 3 contains transitional provision.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to this Order. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with this Order. A copy can be obtained from Local Government Finance Reform, Welsh Government, Cathays Park, Cardiff, CF10 3NQ and is published on www.gov.wales.

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