New Holiday Let Rules in Ceredigion: A Guide for Owners 2026

The landscape for holiday letting in Wales is changing. Whether you’re an established owner in Aberystwyth or looking to invest in a coastal retreat in Borth or Aberaeron, staying compliant is key to a successful business.

At Host Wales, we’ve broken down the latest regulations to help you understand how they affect your property here in Ceredigion.

1. Business Rates vs. Council Tax: The 182-Day Rule

Since April 2023, the Welsh Government has set a high bar for properties to be classified as "commercial" (and therefore eligible for Business Rates instead of Council Tax).

To qualify for Business Rates in Ceredigion, your property must:

Be available to let commercially for at least 252 days in a 12-month period.
Be actually let to guests for at least 182 days in that same period.
Be run with a view to profit (friends and family stays at "mate's rates" do not count toward the 182-day total).

What’s New for 2026? From 1 April 2026, the rules will offer a bit more flexibility. Owners will be able to average their 182-day letting requirement over a two or three-year period. This is great news for owners who might have a "quiet" year but perform well overall. Additionally, up to 14 days of stays donated to charity can now count toward your 182-day total.

2. Ceredigion’s Council Tax Premiums

If your property does not meet the 182-day letting threshold, it is considered a "second home" or "periodically occupied dwelling" and is subject to Council Tax.

In an effort to bring more homes back into local use, Ceredigion County Council has significantly increased the premiums for these properties:

Current Rate (from April 2024): A 100% premium (meaning you pay double the standard council tax).
Upcoming Change (from April 2025): The premium is scheduled to rise to 150% (you will pay 2.5 times the standard rate).

Note: Certain exemptions apply, such as properties with planning conditions that prevent them from being used as a permanent residence (e.g., specific holiday-only chalets).

3. The End of "Furnished Holiday Let" (FHL) Tax Status

A major UK-wide change occurred in April 2025: the abolition of the Furnished Holiday Let tax regime.

What this means: Holiday lets are now treated similarly to standard buy-to-let properties for tax purposes.
The Impact: You can no longer claim full mortgage interest relief against your profits (it is now capped at 20%), and capital gains tax reliefs have changed.

We recommend speaking with a local accountant to see how these federal tax changes interact with your Welsh property business.

4. Mandatory National Registration (Coming October 2026)

The Welsh Government has confirmed that a new Mandatory Visitor Accommodation Register will open this October.

What you need to do: Every holiday let in Wales must register with the Welsh Revenue Authority.
Why it matters: It will be a legal requirement to be on this register to accept bookings.
Host Wales is on it: We are currently reviewing the technical requirements and will assist all our clients with the registration process once the portal opens.

How Host Wales Can Help

Meeting the 182-day threshold is the best way to ensure your property is treated as a business rather than a second home. At Host Wales, we specialise in:

Maximum Occupancy: Using local knowledge to keep your calendar full year-round.
Compliance Advice: Keeping you informed of the upcoming Statutory Licensing Scheme for all visitor accommodation in Wales, expected to launch in late 2025/2026.
Stress-Free Management: From cleaning to guest communication, we handle the hard work so you can enjoy the rewards of owning a property in beautiful West Wales.

Ready to boost your bookings? Contact our Host Wales team today.