Rebecca Evans MS confirms the Welsh Government is considering exceptions from council tax premiums8/9/2022 Rebecca Evans AS/MS Y Gweinidog Cyllid a Llywodraeth Leol Minister for Finance and Local Government
07 September 2022 Thank you for your letter in relation to the classification of self-catering accommodation for local tax purposes. Your letter covers certain points and questions which I have addressed in my replies to Suzy Davies of 9 June, 28 July and 9 August. In particular, I have set out the Welsh Government’s position in relation to the timing of changes to the letting criteria, their application in assessments by the Valuation Office Agency, exceptions from the council tax premium, and the assessment of potential impacts (including equalities considerations). I have also shared our detailed guidance on the operation of the letting criteria, which has been updated to reflect the implementation of the new letting criteria from 1 April 2023 and to include frequently asked questions. I will, therefore, focus on the additional points raised in your letter in this reply. The letting thresholds apply nationally because they define a key aspect of the system, namely whether a property is treated as a domestic dwelling or a non-domestic holiday let for local tax purposes and, in turn, whether it is liable for council tax or non-domestic rates. Other aspects of the local tax system, such as the powers for individual local authorities to apply reductions, reliefs or premiums, In relation to the legislative concerns you raise, in preparing the Non-Domestic Rating (Amendment of Definition of Domestic Property) Order 2022 we took account of all the relevant timing considerations, including the pressing need to address the issues presented by the large number of second homes and holiday lets in some communities. We concluded that the announcement and publication of the plans and legislation provided sufficient notice for local authorities, property owners and other stakeholders to prepare for the changes. The legislation was also scrutinised by the Legislation, Justice and Constitution Committee and its report, which is published on the Senedd website alongside the legislation, did not raise any technical scrutiny points. I can confirm that the published document containing the Explanatory Memorandum (Part 1) also contains the Regulatory Impact Assessment (Part 2). My most recent reply to Suzy Davies addressed specific questions about both parts of the document which is available here: EM/RIA. I have listened to the views of your members and colleagues. The steps we are now taking to consider exceptions from council tax premiums and provide updated guidance to local authorities will take account of the views expressed about the types of properties which might be excluded from liability for premiums. As mentioned previously, the guidance will also clarify the other options available to local authorities, including their powers to reduce council tax bills for individual properties or classes of properties which they can tailor to local needs. The legislation and guidance will reflect the approach I have set out previously, and I can assure you that it will be my considered response to the range of views I have heard. I will make a further statement on the progress of this work in due course. Yours sincerely, Rebecca Evans AS/MS Y Gweinidog Cyllid a Llywodraeth Leol Minister for Finance and Local Government. Yours sincerely, Rebecca Evans AS/MS Y Gweinidog Cyllid a Llywodraeth Leol Minister for Finance and Local Government
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