Does my Scottish holiday let pay business rates or council tax?

When all of these apply: it is not anyone's only or main residence, it is let commercially as short-term self-catering accommodation with a view to making a profit, it is available to let for 140 nights or more in the financial year, and it is actually let for 70 nights or more of those nights. The financial year runs from 1 April to 31 March. The Assessor checks this every year, and it is up to you to prove it.

Only nights let on a commercial basis to paying guests. Non-commercial lets to family members and friends do not count towards the 70 nights. The 70 let nights must fall within the 140 nights the property was available to let. If any single booking is longer than 28 nights, the Scottish Assessors ask you to explain the reason for that stay.

Evidence for each financial year must reach your local Assessor before 27 May in the next financial year, so by 26 May. If the Assessor asks for evidence after the year has ended, you have 56 days from the day the request is sent, if that is later. For example, a request sent on 1 June 2026 about 2025-26 must be answered by 26 July 2026. You do not have to wait to be asked: you can send evidence as soon as you have it. Evidence that arrives late cannot be considered.

For the 140 available nights: copies of booking calendars showing the nights available, and your website, online listing or other adverts. For the 70 let nights: evidence of each booking with its dates and the income received, your tariff for low, mid and high seasons, and an explanation of any booking over 28 nights. Platforms such as Airbnb, Sykes or Booking.com can usually give you a booking summary. If you take your own bookings and have no other proof of payment, add bank statements showing guest payments, with unrelated transactions blacked out. You can send it all with the self-catering declaration on the Scottish Assessors website.

If you do not respond in time, or your evidence is not enough, the property goes on the council tax list for that financial year and you pay council tax instead. If it is furnished, nobody's main home and lived in for at least 25 days a year, it is a second home, and since 1 April 2024 councils can charge a premium of up to 100% (double council tax). Councils can also choose a discount or the standard rate, so check your council's policy.

Yes, once it meets the rules. Complete the self-catering form on the Scottish Assessors website and send evidence that it was available for 140 nights and let for 70 nights in the financial year. In the mygov.scot example, a property first let on 1 June 2024 that met both thresholds by 31 March 2025, with evidence sent in time, went on the valuation roll from 1 June 2024. If there is not enough of the year left to reach both thresholds, it stays on the council tax list for that year.

Possibly. Self-catering is not on the mygov.scot list of property types that cannot get the scheme. You need a combined rateable value of £35,000 or less for all the business premises you occupy in Scotland, £20,000 or less for each property, the property must be actively occupied, and you must hold a valid short-term let licence if the property needs one. With one property, a rateable value up to £12,000 gets 100% relief, £12,001 to £15,000 scales from 100% to 25%, and £15,001 to £20,000 scales from 25% to 0%. You apply to your local council.

Your local Assessor sets the rateable value, usually as an estimate of the rental value, and you can look it up on the Scottish Assessors website. The latest revaluation took effect on 1 April 2026, based on values at 1 April 2025. The next is in 2029. Your council multiplies the rateable value by the tax rate (48.1p in the pound for 2026-27 up to £51,000), then takes off any reliefs. If your property is licensed self-catering accommodation, you can apply for a self-catering Revaluation Transitional Relief that caps bill increases compared with 31 March 2026: 15% for 2026-27, 32.3% for 2027-28 and 52.1% for 2028-29. If you think the value is wrong, ask the Assessor to check it (a proposal) before an appeal.

No. The furnished holiday lettings regime was an income tax and corporation tax rule. HMRC says its abolition does not affect council tax or business rates, and the Scottish Assessors say the 140/70 rules are independent of the HMRC FHL rules and of short-term let licensing. You still need a short-term let licence whichever tax you pay.