Self-catering legislation change
The law in respect of the valuation for Non-Domestic rating of self-catering properties is changing in Scotland.
In order to be classed as a Non-Domestic property and liable for Non-Domestic rates instead of Council Tax, a self-catering property will be required to provide evidence of 70 days of actual letting as well as 140 days of intention to let from 2022-23 onwards. The letting must be on a commercial basis, with a view to the making of profit, therefore, any lettings to family/friends at a nil/reduced rate will not count towards this requirement. Please note that this legislation is independent of any HMRC rules in respect of Furnished Holiday Lets.
If the property is not considered to be self-catering it will enter the Council Tax Valuation List, at an appropriate valuation band, and will be liable for Council Tax. The legislation requires that the entry to the Council Tax Valuation List is to be made retrospectively.
Assessors will be contacting self-catering property operators over the coming period advising of what information is required. In the meantime, operators should keep a detailed log of tariffs, booking information (e.g., names and dates) and income received from bookings from 1 April 2022 onwards.
For further information on Non-Domestic rates, please visit the Scottish Government website: https://www.mygov.scot/non-domestic-rates-guidance/