Clive Mortlock, a 77-year-old smallholder in Henllan Amgoed, near Whitland, Carmarthenshire, was stunned to receive a £27,000 council tax bill for two holiday cottages he runs from his farm. The bill, later revised to £17,000 due to miscalculations, resulted from a Welsh government policy change in 2023 that requires holiday lets to be rented for at least 182 nights a year to qualify for business rates, up from the previous 70-night threshold.
Background and Impact
Mortlock moved to Wales 27 years ago with his wife Adrienne and invested his life savings in 2002 to convert redundant farm buildings into holiday lets, now operating as Glascoed Farm Holiday Cottages. The unexpected tax bill arrived while he was undergoing chemotherapy for cancer. 'It has made a mess of everything. The seemingly unintended consequences have been catastrophic for small holiday let businesses such as mine,' he said. The bill effectively wiped out all profit from the last three years.
Criticism of the Policy
Mortlock described the 182-day rule as 'ludicrous,' citing Wales' climate. 'We have six months of somewhat reasonable weather, and three months of purgatory either side. To imagine we could fill every bed for six months of the year with holiday-goers, in our place which is in the countryside as opposed to by the beach, is mad and illogical.' He is now considering closing the business, which employs local cleaners and tradespeople. 'My wife still has to work as the smallholding is not profitable and the holiday lets had always made up for any losses.'
Government Rationale and Opposition
The Welsh Labour government introduced tougher rules on second homes from 2017, allowing councils to charge up to double council tax, increased to a 300% premium in 2023. Today, 20 of Wales' 22 councils charge at least a 50% premium on second homes. The aim is to reduce the number of second homes and increase housing availability for locals. In 2023, there were nearly 37,000 second homes in Wales, about 12 per 1,000 homes, with Gwynedd at 79 per 1,000.
The 182-night rule closed a loophole where owners avoided higher council tax by renting for at least 70 nights to register as holiday businesses. Supporters say the changes prevent tax avoidance, but critics argue they harm legitimate tourism businesses. Reform UK MS Louise Emery said in the Senedd: 'There is no evidence so far that the higher Welsh bar achieves its aim of increasing the number of family homes in local communities. Protecting housing supply can be done through the planning system, not through an unfair fiscal tool.'
Future Prospects
Adam Price, responding for the government, said finance minister Elin Jones is considering changes to the rule and 'will set out our proposals in due course.' The Welsh Government stated: 'We will keep the 182-day threshold under review and create clear and reasonable new exemptions where that accommodation would not qualify as a private home. This new Welsh government is committed to getting the balance right — keeping homes in our communities while giving tourism the support it needs to thrive.'
