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Cyngor Sir Ynys Môn - Isle of Anglesey County Council

Consultation on the level of Council Tax Premium for dwellings occupied periodically (second homes)


This consultation has now closed.

Part 7, Section 139 of the Housing (Wales) Act 2014, amended the Local Government Finance Act 1992 and allowed to the Council to increase the level of Council Tax charged on any property occupied periodically by up to 100%.

Dwellings occupied periodically, also known as second homes or holiday homes, are properties which has no resident and the dwelling is substantially furnished. In determining if the property has no resident, the Council will consider whether the designated taxpayer, usually the owner, has another property which is used as their sole or main residence.

The power to introduce the premium for dwellings occupied periodically (hereafter referred to as “the premium”) came into effect on 1 April 2017.

The Housing (Wales) Act 2014 does not specify how the Council should use the additional revenue generated by the premium, but the guidance issued by the Welsh Government states that 'the discretion given to local authorities to charge a premium is intended to be a tool to help local authorities to

  • bring long term empty homes back into use to provide safe, secure and affordable homes
  • support local authorities in increasing the supply of affordable housing and enhancing the sustainability of local communities'

The Council initially set the premium on dwellings occupied periodically at 25% and, following a consultation process undertaken in February 2019, the level of the premium on second homes was raised to 35% on 1 April 2019.

When the Executive approved the Council Taxbase for 2021 to 2022 in November 2020 the number of dwellings identified as being occupied periodically in each Council Tax band were as follows:

Band

A

B

C

D

E

F

G

H

I

Total

No. of Properties

161

228

416

534

377

200

106

30

15

2,067

The amount of additional income generated by the application of a 35% premium on these properties in 2021 to 2022 is £1.296 million.

The Council allocated £0.35 million of this funding to provide support to local residents, who currently do not own a property, to purchase their first property. The support is given through various schemes which provide loans and grants to qualifying applicants. To date 91 people have been helped to purchase their first property. 

At present 10 local authorities in Wales (including Anglesey) apply the premium which ranges from 25% (2 authorities), 35% (Anglesey), 50% (5 authorities) and 100% (2 authorities).

In addition to properties that are subject to the premium, there are around 940 properties which are defined as Self Catering Units and are subject to Non Domestic Rates. These properties may have been set up as non domestic properties from the date of inclusion on the non domestic rates register but other properties may have initially been considered as domestic properties and have subsequently transferred across to the non domestic rates register following approval of an application by the Valuation Office Agency (VOA).

On 14 December 2020, the Council’s Executive resolved to 'undertake a full consultation on its intention to increase the premium on second homes to 50% and its additional schemes to help local people, with residents of Anglesey, owners of second homes on the island and operators of self catering accommodation between April and June 2021, with the final decision on the level of the premium being taken by the Executive in September 2021.'

You can take part in this consultation online below. This consultation is completely anonymous and should take about 5 minutes to complete.

This consultation has now closed.

Closing date 6 August 2021.

Paper copies, large print, braille and easy read versions are available on request.  Please contact Llinos M Roberts (Revenues and Benefits Manager) via email at LlinosRoberts5@ynysmon.gov.uk

The information gathered as a result of the responses to the questionnaire will be used to inform a comprehensive impact assessment. This impact assessment together a report outlining the responses to the survey will be considered by the Executive in reaching its decision on the matter during the autumn term. 


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