A Notice of Motion focusing on the use of discretionary powers relating to Second Home Premiums, will go before Pembrokeshire County Council’s cabinet, when they meet on Monday (September 7).

The following Notice of Motion submitted by Councillor John Davies has been referred to Cabinet for consideration and determination; such motion being in the following terms: ‘That Pembrokeshire County Council applies its discretionary power not to retrospectively charge the second homes premium on residential property that have moved from business rates to residential Council Tax.

‘This discretion is applied on municipal years, when the VO have failed to inform Revenue Services of the change of status within the relevant municipal year.’

If a property is not let for 182 days or more a year, it will attract council tax and if it is not the main residence of a taxpayer and substantially furnished will attract the second homes premium.

Many of these properties will have previously benefited from small business rate relief. The change in legislation has led to an increase in properties held in the council tax list, these properties being moved from the NDR list due to failing to meet the thresholds.

This decision is made by the Valuation Office (VO) and is one the Council has no control or influence over.

The classification of a property as liable for either Council Tax or Non-Domestic Rates is determined by the VO and not by Pembrokeshire County Council.

Where the VO determines that a property does not meet the required thresholds, the Council is then required to amend its records and issue revised liabilities accordingly.

A report from the Head of Finance and Revenue Services that will go before councillors states: “The concerns raised by the Notice of Motion reflect genuine issues experienced by some property owners who have faced substantial retrospective liabilities following Valuation Officer decisions.

“However, implementation of the proposal raises a number of risks for the Council, including:

• compliance with Welsh Government policy objectives relating to Council Tax premiums, currently under consultation;

• the legal basis for creating a specific class of discretionary relief;

• the practical administration of any such scheme;

• the financial impact on premium income and related services; and

• consistency and fairness in the treatment of taxpayers.

For these reasons, it is being recommeneded that a decision on any amendments to PCC’s discretionary discount policy is deferred until after Welsh Government’s consultation closes and any changes confirmed and its impact for Pembrokeshire becomes clear.

Of the outstanding second homes premium Council Tax debt at the end of June 2026:

• 78 properties owe more than £20,000

• 230 properties owe between £10,000 and £20,000

• 3,086 properties owe between £1,000 and £10,000

It should be noted that these figures include the charge for 2026-27 which accounts for the large increase since March 2026.

It is also not possible to establish whether the debt is attributable to the VO backlog without reviewing each individual account.