For those of you in the Self Catering sector, you will 
undoubtedly already know what the 70 day rule is about. There may well 
be a good few of you who have shuddered at the mere mention of it. For 
those not sure what we are talking about the basic premise is fairly 
simple - owners of properties that are let for self catering holidays, 
must ensure that they have 70 days/nights booked out in any one 
financial year in order to qualify for business rates as opposed to 
domestic rates. 
Now the theory behind this rule was to essentially close a 
loophole where second home owners were stating that the property was 
being run for business purposes (ie holiday let) and therefore 
qualifying for business rates, when in fact they were tending to let it 
or even loan it to friends and family for breaks, or indeed leaving it 
to stand empty for much of the year. 
However, the current economic climate, coupled with an 
extremely competitive market place has meant that in addition to those 
slightly less 'operational businesses', many genuine self catering 
accommodation providers have been hit by an increase in rates having 
failed to fill the bookings diary for 70 nights or more.
It is a major concern for many. Margins are already tight, 
with very little room to move in terms of offering discounts or other 
special offers to attract the paying visitor. Where many of these 
businesses are currently enjoying the 'breathing space' offered by the 
Small Business Rate Relief scheme, failure to fill 70 nights has meant 
that they have seen their business 'revalued' and moved into the 
domestic rates bandings, instantly adding several hundred pounds if not 
more, to the profit and loss accounts. 
In a statement issued today by Welsh Government, we are told that "The
Minister for Local Government and Minister for Economy have
commissioned independent research to examine the operation of these
regulations, which were originally introduced to close a loophole
allowing some home-owners to pay lower council tax by listing their
property as a holiday let whilst not actively seeking to let it."
At time of writing we don't yet know when this research will
 begin, or when it will be published. Pembrokeshire Tourism has already 
raised the issue with the Wales Tourism Alliance, and been featured as 
part of a BBC Wales report on the issue. What we will continue to do is 
raise the issue, and with this in mind we would welcome your feedback 
and comments. Have you been affected by this rule? Is it causing you to 
reconsider your business operation? The more information we have from 
you as operators, the stronger the message we can take to the Welsh 
Government on this issue. Please get in touch with us, either by phone 
on 01646 622228 or email your thoughts to 
maudie@holiday-pembrokeshire.co.uk
 



