Buying a Second Home or Holiday Let in Wales

Higher rates of Land Transaction Tax

We are not authorised to give tax advice. The figures shown are estimates worked out from the rates published by the government, and are for guidance only. It is your responsibility to check the Land Transaction Tax or Stamp Duty Land Tax that applies to you, and any reliefs or exemptions, on GOV.UK or with an accountant or tax adviser, before you rely on it.

If you will own more than one home after the purchase, the higher residential rates of Land Transaction Tax normally apply, starting at 5% on the first £180,000. On a £250,000 second home that means £14,950 of LTT, compared with £1,500 if the same property were your only home. Try our LTT calculator for your own figures.

Business rates or council tax?

A furnished holiday let in Wales pays business rates rather than council tax only if it meets a letting test. At the time of writing, the property must be available to let for at least 252 days and actually let for at least 182 days in a 12-month period. If it falls short, it becomes liable for council tax, and Welsh councils can charge a premium of up to 300% on second homes. Each council sets its own premium, so check the level for the area you are buying in.

These rules are under review. The Welsh Government has been consulting on changes to the 182-day threshold, including averaging lettings over several years, so we check the position when you buy.

Planning

In some parts of Wales, councils have used planning powers (known as Article 4 Directions) to require planning permission before a home can become a holiday let or second home. We check the planning position and the lawful use of the property as part of the purchase, because buying a property that cannot lawfully be used as you intend is an expensive mistake.

Registration and licensing

The Welsh Government has been developing a registration and licensing scheme for visitor accommodation. We will tell you where this stands at the time you buy, and what it may mean for the property.

Tax on your income and any future sale

The tax treatment of holiday lets changed in April 2025, when the furnished holiday lettings regime ended. Income tax and capital gains tax are outside what we advise on, so please speak to an accountant before you buy.

What we check for you

Title and restrictions, including any covenants or conditions limiting how the property can be used.
Planning and lawful use, and any local restrictions on second homes or holiday lets.
The correct LTT rate, and the LTT return and payment.
Mortgage conditions. Lenders have their own rules for second homes and holiday lets, and we make sure you comply with them.
Leasehold issues, where the property is a flat or has a lease, including service charges and ground rent.

Frequently asked questions

Do I pay higher LTT if I buy a holiday let?

If you will own more than one home after the purchase, the higher rates normally apply. That includes most holiday lets bought by someone who already owns a home. We confirm the position when you instruct us.

What is the 182-day rule?

For a self-catering property to pay business rates instead of council tax, it must currently be available to let for at least 252 days and actually let for at least 182 days in a 12-month period. The Welsh Government has been consulting on changes, so check the current rules before you buy.

Can the council charge extra council tax?

Yes. Welsh councils can charge a council tax premium of up to 300% on second homes, and each council sets its own level. A holiday let that fails the letting test becomes liable for council tax, and the premium can then apply.

Do I need planning permission to use a home as a holiday let?

It depends on the property and the area. Some councils have used planning powers to require permission for a change to holiday letting or second-home use. We check the planning position as part of the purchase.

Useful links

Welsh Government: LTT rates and bands — the official rate tables
Welsh Government: self-catering classification consultation — the latest on the letting test
Welsh Government: new tax rules for second homes — council tax premiums and the letting tests

More helpful sites are collected on our useful links page. We are not responsible for the content of other websites. This page gives general information, not legal advice, and is correct as at October 2026.