Self-catering, bed and breakfast and guest houses

You’ll need to pay non-domestic rates (business rates) if you run self-catering holiday accommodation.

Your property may be counted as self-catering holiday accommodation if all of the following apply:

• it's not someone's only or main residence
• it’s let commercially as short-term self-catering accommodation, with the intention of making a profit
• it's available to let for 140 nights or more in a financial year
• it’s let for 70 nights or more in a financial year

A financial year is from 1 April to 31 March.

Evidence you need to provide

Assessors value all non-domestic properties for non-domestic rates.

You must give proof to the assessor that your property met the rules for self-catering holiday accommodation for the financial year ending 31 March.

You can complete a self-catering declaration form on the Scottish Assessors Association website. You can do this as soon as you have the information ready.

Find out what evidence you need to provide on the Scottish Assessors Association website. 

The deadline to submit your evidence is usually 26 May in the next financial year.

The assessor may contact you to ask:

• how many nights the property was available to let
• how many nights the property was let

You must respond to them by whichever of these dates is later:

• 56 days after the end of the financial year
• 56 days of the request

For example, if the assessor asks you for information on 1 June 2026 about the financial year 2025-26, you must respond by 26 July 2026.

If the assessor asks you for information on 1 June 2026 about the financial year 2026-27, you must respond by 26 May 2027.

If the assessor does not ask you for information about 2026-27, you must still provide your evidence by 26 May 2027.

If you do not provide evidence

If you do not respond by the deadline or give enough evidence, your property will be on the Council Tax list for that financial year. This means you’ll have to pay Council Tax on it.

Getting a decision

The assessor will look at your evidence. They’ll tell you if your property is classed as self-catering holiday accommodation and you need to pay non-domestic rates. 

If you need to pay non-domestic rates, they’ll give it a rateable value and enter it on the valuation roll. 

Your local council will then send you a non-domestic rates bill.

Check if you can get non-domestic rates relief (discount).

New owners

If you find that your self-catering property is on the Council Tax valuation list, you can ask the assessor to consider it for non-domestic rates.

Complete the self-catering form on the Scottish Assessors Association website.

Example 1

Lukas buys a self-catering property on 1 February 2025 and continues to let it out.

He has evidence that in this financial year (2024-25), it was:

• available to let for 140 nights
• actually let for 70 nights

Lukas fills in the self-catering declaration form. The assessor now has all the evidence they need for this financial year.

Example 2

Julie has a property which is on the Council Tax valuation list.

She starts letting it out for self-catering accommodation on 1 February 2024.

There is not enough time left before the end of the financial year (31 March) for her property to be both:

• available to let for 140 nights
• actually let for 70 nights

Julie's property stays on the Council Tax valuation list for the rest of the financial year.

Julie must submit evidence to the assessor by the deadline if she meets all the requirements in the next financial year. 

Example 3

Calum bought a property which is on the Council Tax valuation list.

He starts to use it as self-catering accommodation from 1 June 2024.

He makes it available to let for more than 140 nights by the end of the financial year (31 March 2025).

He lets it for more than 70 nights by the end of the financial year.

He provides evidence of letting to the assessor before 26 May 2025.

The property is removed from the Council Tax valuation list.

The assessor enters it on the valuation roll, starting from 1 June 2024 (the date Calum started to let it).

Guest houses or bed and breakfasts

If you run a bed and breakfast, you’ll need to pay Council Tax on it if both of the following apply:

• it’s someone’s only or main residence
• it’s let commercially as bed and breakfast accommodation for up to 6 people a night, with the intention of making a profit

If your bed and breakfast does not meet these conditions, you’ll need to pay non-domestic rates instead.

You’ll also pay non-domestic rates if your property is a guest house.

Contact your local assessor to find out if you need to pay non-domestic rates.