July 2020


Dear Mr Harper-Smith

I am writing in response to your petition about the treatment of second home owners in relation to the coronavirus non-domestic rates grant payments.

Support grants are available to self-catering businesses, on the grounds they fall within one of the sectors most immediately affected by the coronavirus pandemic and make an important contribution to the tourism economy in Wales.

However, the guidance accompanying the grant scheme provides local authorities with discretion to award the grant to a particular business and any additional evidence they require from business owners before making a grant award.

These discretions extend to local authorities’ decisions about awarding grants to all businesses in the eligible categories, including self-catering accommodation. The guidance has been drawn up in consultation with a working group of local authority representatives and the Welsh Local Government Association. Updated guidance was provided to local authorities, which are responsible for the of this grant scheme.

The guidance was amended following discussion with local authorities. Some rural authorities expressed concern about the potential for grants to be paid to second home owners who only occasionally let out their property. As of 20 April, in relation to self-catering accommodation, properties are not be eligible for the grant unless the following criteria are met:

• The self-catering accommodation can produce two years’ of trading accounts directly preceding the current financial year;
• The self-catering accommodation must have been let for a period of 140 days or more in the financial year 2019-20;
• The self-catering accommodation business must be the primary source of income for the owner (minimum threshold is 50%).

Local authorities have the full discretion to request and examine trading business accounts, booking lists and self-assessment tax returns submitted to HMRC for the financial year ending 31 March 2019 if additional evidence is required to demonstrate that this criteria is met.

In cases where local authorities have decided to request additional evidence and the evidence shows that the scheme criteria are not met, local authorities are required to withhold payment of grant.

The Welsh Government continues to liaise closely with the Valuation Office Agency regarding any developments in the nature of transfers between the council tax list and the non domestic rating list – such transfers can take place in both directions.

The additional grant support is being provided to properties on the non-domestic rating list as at 20 March 2020. Properties added to the list after this date may only be awarded a grant at the discretion of a local authority.

MARK DRAKEFORD