Lay My Hat

Hi everyone, I recently purchase a house in north wales to let out and as this is the first time I need some advice with info I need to know, guy from council tax office told me I may need 'Planning' permission to change house from residential to commercial council tax, I phone the planning office today and they told me I did not need planning as I own the house and had nothing to do with the council if I decide to rent it out, is this the case?

Hi Rotaman,

I just started letting this year as well, although my apartment was already a holiday let. I got really confused over the council tax until I realised its not council tax I needed to apply for, it was business rates. As a small business you can apply for small business rate relief once you have registered. Mine was 100% so I don't pay anything but there are various rules on how much relief you get related to the 'rateable value' of your property and whether you own two or more holiday lets.

I'm not aware if you need to apply for a 'change of use' under planning rules or register as a business or anything like that but I'm sure others will know.

HTH
Jenny

I am in North Wales too, with Gwynedd Council. I did not need planning permission for my holiday let and I chose to register for business rates, this is not compulsory.
Hope this helps!
Sam

I don't believe it is an issue that involves the Council directly. Just phone the Valuation Office Agency www.voa.gov.uk and make contact with your local office. Ask to have the property added to the rating list. In order to assess the rateable value of your property, they will ask for information about the property, its layout, number of beds, size, etc. It will then be given a rateable value. Your tax liability is the RV x Uniform Business Rate multiplier(something like 40p or 45p in the pound).

You may be eligible for Small Business Rate Relief or other various reliefs, which can reduce your liability significantly. By paying business rates, you do lose some benefits of paying residential council tax, such as bin collections, etc. So, be aware of that.

Sammy wrote:I am in North Wales too, with Gwynedd Council. I did not need planning permission for my holiday let and I chose to register for business rates, this is not compulsory.
Hope this helps!
Sam

Yes your information help sam thank you

Here's the Gospel:

Change of use
Even if you only wish to start offering a simple bed and breakfast in your home or to equip an existing building as a holiday cottage where no structural alterations to the property will be carried out, you may need 'change of use' planning permission to do so.

Notice it says "may need".
You may also need to check out any requirements under building regs.

The full information is here

To confound the issue, different councils seem to have different (or completely indifferent) attitudes. The only way you'll find out is to ask them.

Its well worth going for business rates if you qualify by renting enough nights etc. Just been through it for a second property, we wont get SBRR on that one, just hope we dont lose it on the first.

DO BE CAREFUL on the refuse issue as even if you pay council tax your rubbish is seen as commercial waste and you have to pay for it to be collected. This is certainly the case in Dorset and a number of other places. We do get a discount on the refuse as we currently qualify for SBRR.

My cottage is in England. I was in contact with the council re use as a holiday let - no requirement for planning permission..

I registered for business rates - a great bonus as I have the business rate relief so pay no tax.