Woman with tiny cabin in garden gets huge tax bill after neighbour's complaint
A woman who rents a small cabin in her garden to holiday makers says she may have to demolish it after being hit with huge 'second home' tax bills.
Owner Hazel Cullen, 60, claims the cabin on her property in Builth Wells, Wales, should not count as a second home because of its small size, lack of kitchen and the fact it is in her garden.
Hazel, her lorry driver husband Richard and their teenage daughter moved to the two acre property, called Matt's Farm, in 2019.
As well as the main home, which the family live in, it also came with a tired-looking cabin, which Hazel lovingly refurbished and named Woodpecker Lodge, reports Wales Online.
She began welcoming guests and cooked for them inside the main house - which lies yards away from the lodge - and was making a decent profit from the venture.
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The living area in the cabin (Jonathon Hill)But problems started when a neighbour complained about lights at the lodge to Powys County Council.
“A valuation officer turned up in March 2020 and we initially were told everything would be okay,” former hairdresser Hazel said. “But then we were given a council tax bill and were told it was because the cabin was a second home.
“It isn’t a second home. If I wanted to go on holiday to my second home why would I want to do it in my back garden? We told them it wasn’t a second home, it’s a cabin, but they weren’t having any of it.
"The council tax on it is going up and up and next year it’s going to be ridiculous. I’ll be losing money on it.”
Hazel has spent three years arguing that she should not be paying second home council tax on the cabin. She says the cabin is simply an extension to her home and is even attached to their water and electricity. No-one ever paid council tax on it before she moved to Matt's Farm, she said.
The bedroom (Jonathon Hill)Since 2017 local authorities in Wales have been able to charge a premium of up to 100% of the standard rate of council tax on second homes designed to prevent second home-owners taking over Wales’ top visitor spots. But under new criteria councils will have the power to increase council tax premiums to 300%. The Valuation Office Agency assesses properties in Wales for council tax based on whether their primary use is considered domestic or non-domestic.
Supporters of the Wales-only measure say it is crucial to quelling soaring house prices and lack of housing availability, particularly in sought-after coastal locations. But there are many opponents too who say the policy will cripple Wales' tourism economy.
The lodge lies yards from the family's home (Jonathon Hill)By the end of the financial year Hazel believes she will pay up to a 300% premium on her cabin, totalling more than £9,000 annually – more than three times the bills in her 11-room country home. Last month the Welsh Government explained that it is up to each individual council whether they charge 300%. Powys council currently charges a 75% premium after councillors unanimously passed the measure in February.
Hazel, originally from Yorkshire, said: "When we moved here we decided to do it because you could get more for your money here than in Crickhowell. It was all overgrown with trees hiding the cabin – we couldn't even see it.
"As soon as I saw it I fell in love with it and knew exactly what I wanted to do. We cleared the garden and cleaned out the cabin and got it all ready before we got locked down and then had this guy at the gate from the Valuation Office Agency saying: 'It's been reported that there has been a light on in the cabin and it's being lived in.' I saw on his laptop that he had all of the information about us from Booking.com and I let him take pictures."
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Hazel and her daughter Megan outside the lodge (Jonathon Hill)Hazel said that the cabin, which is no bigger than a standard garage, couldn't be considered a second home because there aren't enough facilities in there. The cabin has a bathroom, a bedroom, and a lounge packed into a cosy space which adds to its appeal.
"I assured them those staying in the cabin can't prepare food in there and there is no kitchen," she said. "Those staying in there come to the conservatory and I do them breakfast.
"The man from the Valuation Office was very nice and said there would be no problems. But the next thing I got a council tax bill from Powys council. I haven't got a problem with the council tax because it's band A and that's fine. But what I've got an issue with is that they call it a second home.
Hazel says the lodge is a bedroom extension of the main house (Jonathon Hill)"We told the council it's a bedroom extension and it's linked to our water and electricity but they've decided to class it as a second home and have even give it its own address. The premiums are ridiculous. This year they've put the premium on it to 75% which takes the price up to £2,163. Next year it's going to be up to 300% which will be £9,000.
"It's busy but it's only open for half of the year and it doesn't merit keeping it open while paying that amount of tax. They've said they won't remove the council tax on it unless it becomes derelict so basically I now have to demolish it.
"We love Wales, we love providing tourism in Wales, but this has all made us think: 'Do we want to live over the border instead?' My husband has always lived in Wales and he has said it's got so bad with all of the charges that he would now consider moving to England to do it instead.
Hazel feels she may have to demolish Woodpecker Lodge (Jonathon Hill)"Here I could turn every room in this house into bed and breakfast accommodation and they wouldn't charge us a penny extra but I can't have the cabin outside, which was already there when we got here, without being charged this premium. This was my retirement dream but this whole thing has put the kibosh on it.
"It would be such a shame [to have to demolish it] because we love it here and we love the area. So many small local businesses are having difficulties and we always recommend local places and places to go and see."
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