Senior councillors could step in to cut huge council tax bills faced by holiday let owners in Powys.

The bills, some reaching up to £55,000, have been issued after more than 250 self-catering properties were moved from business rates to council tax.

A report going before Powys County Council’s cabinet next week will update senior Liberal Democrat and Labour councillors on the situation.

This move from business rates to council tax is a consequence of failing to meet the new Welsh Government criteria over the number of days they are available or let during the year.

The council charges a 100 per cent premium on long-term empty properties, which doubles the bill, and 75 per cent on periodically occupied dwellings, which are second/holiday homes.

The report explained that, as the properties fall into the “periodically occupied” criteria, a 75 per cent premium applies to them as well as the standard council tax charge.

In some cases, a complex of several holiday cottages could be rated as a single business for business rates but as separate properties for council tax.

The council is allowed to backdate these bills to April 1, 2023. This means bills of up to £55,000 have been issued to some owners as a result of this change.

This has resulted in significant financial difficulties for the businesses and owners affected.

The report said: “The council tax team has seen a significant increase in work associated with premium queries and challenges, with avoidance tactics being attempted on a frequent basis, resulting in nine tribunal hearings to the Valuation Tribunal Service since 2023.

“The transfer of large numbers of self-catering units from business rates to the council tax list has resulted in a high level of correspondence from distressed customers, due to the large, backdated bills they have received.”

The report goes on to explain that the side of the ledger on council tax collection rates for properties where a premium is being charged is in arrears to the tune of £2.433 million as of April 1, 2025.

At next week’s meeting, it is expected that finance portfolio holder, Cllr David Thomas (Labour – Tawe Uchaf), will recommend that councillors vote for option one in the report, which is that: “The owners will pay council tax on the property from April 1, 2023, but the premium on top of 75 per cent will be waived up to the date when the VOA decided it was liable for council tax.”

Cllr Thomas said: “Option one is the preferred option as it upholds the fundamental principle that the standard council tax liability should apply once a property has been transferred to the council tax list by the Valuation Office Agency.”

He said that asking for the basic payment up to their date of transfer is “fair” and consistent.

The report explains that those who have already paid their bill in full will be refunded.