Pensioner hit with staggering council tax bill after trying to earn some extra money

A Pembrokeshire pensioner who transformed an old milking parlour into holiday accommodation to supplement her retirement income has been handed a scorching council tax demand of more than £9,000 per year in recurring payments.

Caroline Byford, 62, moved to her Grade-II listed farmhouse with husband Shaun, 64, in May 2024, and spotted an opportunity to make some extra cash from the renovated outbuilding at the bottom of her garden.

However, despite the structure sitting within her property boundaries, the local council treats it as a separate dwelling subject to Wales's second home premium.

"It seems that the council assumes one size fits all when it comes to defining a second home," Mrs Byford told reporters.

"We are in an unfair situation of parasitic tax. Wales is no longer a place for opportunity or investment."

The former milking parlour, restored by the property's prior owners, stands merely three metres from the main farmhouse and had historically functioned as linked family accommodation.

Mrs Byford said: "There is no access to the old milking parlour other than through our home and garden. It shares utility services with ours, too. It can't be sold since there is no access to the property elsewhere."

The arrangement means the couple must remain on site to guide guests through their private grounds to reach the outbuilding, severely limiting their ability to leave their home unattended.

"Our family is not local and would involve a few days away from site, which isn't possible," Mrs Byford added.

The financial burden has grown rapidly since the couple acquired the property.

During 2024/25, Mrs Byford paid £6,032.64 for the holiday let, including a 200 per cent second home premium - plus £2,010.88 for her main residence.

This year, the combined bill reached £9,164.97 - comprising £6,223.13 for the outbuilding with a 150 per cent premium, and £2,941.84 for the farmhouse.

The National Association of Local Councils puts the typical Band D council tax across Britain at £2,392 annually.

Welsh Government regulations require holiday lets to be occupied for at least 182 days per year, and available for 252 days, to qualify for business rates rather than council tax.

Mrs Byford said the three-bedroom property attracts families restricted to school holidays, making it difficult to achieve the threshold for bookings.

"Along with the cost of maintenance, insurance and utility bills and of course, council tax, we're not covering our costs in letting the home," she said.

Mrs Byford has approached several local MPs, but says she has received only holding statements while they examine her circumstances.

"We're constantly worrying about our finances and if we will obtain enough bookings to cover the costs of running, maintaining and insuring the barn," she said, "there isn't much more we can do. It's so very stressful."

A Pembrokeshire Council spokesman stated that letting day requirements and second home premium criteria are determined by Welsh Government legislation, adding that taxpayers should check whether statutory exceptions apply to their property.

Meanwhile, a Welsh Government spokesman said: "This new Government is committed to getting the balance right.

"We will keep the 182-day threshold for holiday accommodation under review and create clear and reasonable new exemptions where that accommodation would not qualify as a private home."