Islands (Scotland) Act 2018 and the introduction and operation of the self-catering thresholds: FOI release

Information requested

The following recorded information only, relating to the application of the Islands (Scotland) Act 2018 in connection with the introduction and operation of the self-catering thresholds requiring properties to be actually let for at least 70 days and available to let for at least 140 days for entry or maintenance on the non-domestic valuation roll, and in relation to island communities within Argyll and Bute (including, but not limited to, Mull, Iona, Ulva, Gometra, Islay, Jura, Colonsay, Tiree, Coll, Gigha and Bute.

1. Island Communities Impact Assessment (ICIA)

a) Please confirm whether an Island Communities Impact Assessment (ICIA) was prepared in relation to:

• the Non-Domestic Rates (Definition of Domestic Property) (Scotland) Order 2022, and
• any related amending instruments or published guidance introducing or operationalising the 70/140 day thresholds.

b) If an ICIA was prepared, please provide:

• the final ICIA document(s) as completed, and
• the date(s) of completion.

c) If no ICIA was prepared, please provide any recorded determination or statement of reasons explaining why Scottish Ministers concluded that an ICIA was not required in respect of island communities.

2. Identification of island-specific impacts (completed material only)

Please provide any finalised analysis, reports, or summaries held by the Scottish Government that identify or quantify impacts of the 70/140 day thresholds on Argyll and Bute island communities, including impacts relating to:

• seasonal or ferry-dependent access, including islands with limited ferry and public transport access, and/or limited road access, and including ferry disruption due to inadequate capacity in context of delayed delivery of new ferries and unreliability of existing ferry stock
• weather-related availability constraints, or
• structural differences between island and mainland letting markets, including but not limited to islands with no landline broadband provision, or no reasonable access to medical and other government and local authority services or public utilities; and fairness of tight timescales and draconian rules for supply of information on islands without reliable postal services This request excludes draft material and requests only completed or issued documents.

This request excludes draft material and requests only completed or issued documents.

3. Guidance issued for island areas

Please provide copies of any published or formally issued guidance, circulars, or instructions supplied by the Scottish Government to Assessors, Valuation Joint Boards, or local authorities that refer to:

• island communities generally, or
• Argyll and Bute islands specifically,

 in the context of applying the 70/140 day thresholds.

4. Monitoring and review

Please confirm whether the Scottish Government has carried out, or commissioned, any postimplementation review or monitoring specifically addressing the effects of the 70/140 day thresholds on island communities in Argyll and Bute, and if so provide any final reports or published findings, including but not limited to the effect on local authority budgets of providing statutory services such as education to holiday let premises converted to full time occupation due to the 70/140 rule.

Response

I enclose a copy of some of the information you requested.

The instruments relating to the requirement for self-catering holiday accommodation to be let for a period of at least 70 days in the financial year, as well as available for let for at least 140 days, in order for it be to be classed as self-catering holiday accommodation and rated as non-domestic are as set out below. The unit of measurement changed from days to nights with effect from 1 April 2024.

• The Council Tax (Dwellings and Part Residential Subjects) (Scotland) Amendment Regulations 2021
• The Council Tax (Dwellings and Part Residential Subjects) (Scotland) Amendment Regulations 2024
• The Council Tax (Dwellings and Part Residential Subjects) (Scotland) Amendment Regulations 2025

There is no Scottish Statutory Instrument called the Non-Domestic Rates (Definition of Domestic Property) (Scotland) Order 2022 to which you refer in your request.

No Island Communities Impact Assessment (ICIA) was prepared in relation to these regulations. The introduction of a requirement to let a self-catering property for at least 70 days in a financial year has no significantly different effect on properties let as part of a bonafide self-catering business. The policy note for The Council Tax (Dwellings and Part Residential Subjects) (Scotland) Amendment Regulations 2021 does however, explain that, in respect of local authority discretion, an example of exceptional circumstances relating to environmental or seasonal conditions may be where travel to and from an island is limited to ferries which can be restricted due to the weather or season as this would then impact the amount of time for which any properties on the island can be let. 

In 2023, an open consultation on Council Tax for second and empty homes, and non-domestic rates thresholds invited views on the non-domestic rates thresholds for selfcatering holiday accommodation. A partial Island Communities Impact Assessment was published alongside that consultation document at Non-domestic rates/Council Tax second and empty homes consultation: partial impact assessments - gov.scot. The consultation document invited views on those impact assessments and a consultation report compiled by an independent social research company, with an analysis of the responses to the consultation, was published on the Scottish Government website at Council tax for second and empty homes, and thresholds for non-domestic rates: consultation analysis - gov.scot (www.gov.scot).

Following the consultation, Scottish Ministers decided not to alter the thresholds for non-domestic rates for self-catering holiday accommodation at that time. No further island communities impact assessment was therefore completed in respect of the thresholds for non-domestic rates.

While our aim is to provide information whenever possible, in this instance the Scottish Government does not have some of the information you have requested. While all non-domestic rates policies are kept under review, the Scottish Government has not carried out or commissioned any postimplementation review or monitoring specifically addressing the effects of the 70/140 thresholds on island communities in Argyll and Bute.

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