With several local authorities, including Highland and Edinburgh, now applying Council Tax premiums, the ASSC would like to clarify the important distinction between second homes and genuine self‑catering businesses.
The ASSC represents professional self‑catering operators. Where a property is operated as a commercial self‑catering business, it should normally be assessed under Non‑Domestic Rates (NDR) rather than Council Tax. This classification is determined by the independent Scottish Assessor and is based on statutory criteria. It is not a matter of owner choice.
To be entered on the Non‑Domestic Valuation Roll, a property must meet both of the following requirements:
Where these thresholds are met, the Assessor must classify the property as non‑domestic, meaning Council Tax no longer applies. Many businesses then qualify for the Small Business Bonus Scheme, which can reduce or remove rates liability depending on the combined rateable value of properties held.
If a property remains on Council Tax, it usually indicates one of the following:
It is also important to note that the short‑term let licensing system operates entirely separately from tax classification. Holding a short‑term let licence does not automatically place a property onto NDR, and some licensed properties will continue to sit within Council Tax if they do not meet the non‑domestic criteria.
As the representative body for Scotland’s self‑catering sector, the ASSC is focused on ensuring that legitimate operators are recognised correctly as businesses within the NDR system and are not incorrectly moved back into Council Tax because of administrative issues or missing evidence. We continue to work with the Scottish Government, Assessors and local authorities to improve consistency and clarity around these rules.