The Association of Scotland’s Self-Caterers (ASSC) has welcomed the announcement from the Scottish Government that it will bring forward amending regulations to address the classification of self-catering holiday accommodation for the 2023–24 financial year.
The leading trade body has clocked up yet another victory on behalf of its membership following months of relentless lobbying. This was in response to widespread concerns that legitimate businesses were being unfairly reclassified due to failures with the process rather than non-compliance.
Under current regulations, self-catering accommodation is classified as non-domestic and liable for non-domestic rates (NDR) where it is available to let for 140 nights and actually let for 70 nights or more in a financial year. However, due to a systemic failure in process and communication, many operators found their properties incorrectly removed from the valuation roll and reclassified as dwellings liable for council tax – and this was despite meeting the legal thresholds.
This reclassification led to acute financial pressure, legal challenges, and prolonged stress and anxiety for many in the sector. The ASSC continuously highlighted this gross inequity and pressed for a fair solution. Following engagement with Minister for Public Finance Ivan McKee and his officials, the Scottish Government have now committed to laying amending regulations before Holyrood, providing a new opportunity for evidence to be submitted and considered for the 2023–24 year which will hopefully come as great relief for those affected.
The ASSC will continue to monitor developments closely and work with the Scottish Government to ensure the successful implementation of the new regulations.
Fiona Campbell MBE, CEO of the Association of Scotland’s Self-Caterers, commented:
“We welcome the constructive discussions with the Scottish Government to address what was clearly a systemic process failure. The intransigence of Scottish Assessors in addressing the clear inequity caused real harm to legitimate businesses – punishing operators who do so much to support our tourism economy and rural communities – with some even being taken to Tribunal and even Sheriff Court. The devastating impact on operators’ wellbeing cannot be understated.
This deeply regrettable situation should never have happened. It once again demonstrates the unintended consequences resulting from poorly drafted legislation, as this policy was never meant to target legitimate small businesses. The system failed and we must strive to do better in the future.
However, I am delighted that our persistence has resulted in a meaningful resolution and am particularly grateful to Ivan McKee for his willingness to both listen, and crucially act, on our concerns. Rest assured, the ASSC will continue to stand up for the interests of our members and ensure Scotland’s £1bn self-catering sector is treated fairly in all regulatory matters.”