Farm holiday lets set for refunds as Powys moves to ease 182-day tax rule

Farm holiday let businesses in mid Wales could be in line for refunds worth thousands of pounds after Powys County Council moved to ease controversial tax rules. The council’s Cabinet backed plans on 24 March 2026 to scrap the premium element from backdated council tax bills on some holiday lets reclassified as second homes. If approved by full council on 14 May, the changes would be applied retrospectively to April 2023, opening the door to significant repayments for affected operators. The proposal offers a potential lifeline to farming families who rely on self-catering lets as a vital secondary income stream but have been unable to meet strict letting thresholds. The move follows calls from Gwynedd Council to review the 182-night rule, signalling growing unease among local authorities about how the policy is working in practice. Holiday lets in Wales must be rented for at least 182 nights a year to qualify for business rates. Properties that fall short are moved into council ...