December 2022 - Page 2 of 5

Highland Council Planning Policy Consultation

Posted on December 21, 2022February 21, 2023 by Fiona Campbell

The Highland Council is consulting on draft planning policies to support the Badenoch and Strathspey Short-term Let Control Area. This consultation will help inform the policies to be used in the Planning Control Area now that is has been approved by Scottish Ministers.

“The policies have been developed to control short-term secondary letting across Ward 20 to help tackle the rural housing crisis and support rural communities.

“The proposed policies can be viewed and commented upon on the Council consultation page – https://consult.highland.gov.uk/kse/. All comments received will be considered and used to finalise the policy. Comments must be submitted in writing no later than 3rd February 2023. The consultation period has been extended from six weeks to 8 weeks to accommodate the festive period.

“The Highland Council is currently only the second Local Authority in Scotland to be proposing the establishment of a Short-term Let Control Area, after Edinburgh Council commenced their Short-term Let Control Area in September 2022.

“A Control Area is not a ban on Short Term Let and would not change the planning rules around certain type of accommodation. This consultation is also not related to the recent the Scottish Government announcement for all forms of Short-term Lets to be licensed by April 2024.

“For further information, please visit www.highland.gov.uk/stlcontrolarea or contact the Highland Council, Development Plans Team on devplans@highland.gov.uk”

Badenoch & Strathspey Becomes Planning Control Area

Posted on December 21, 2022February 21, 2023 by Fiona Campbell

Scottish Ministers have approved the proposed designation of Highland Council Ward 20 (Badenoch & Strathspey) as a Short-Term Let Control Area.

Fiona Campbell, Chief Executive of the Association of Self-Caterers, said:

“The decision by Scottish Ministers to grant Badenoch and Strathspey a short-term let control area is based on such flimsy, unevidenced grounds.

As the original consultation showed, responses for and against were evenly split. We warned of the unintended consequences of this measure, and the lack of empirical data to support it, and are disappointed that our concerns have been overlooked for an industry that generates over £200m per annum for the Highlands economy.

While hitting council budgets at a time they can least afford it, there is no evidence that this policy will work in addressing housing challenges. Instead of taking a holistic approach – for instance, building more affordable housing or action on empty homes – clamping down on short-term lets is seen as a simplistic cure-all.

This is deeply depressing news after we had welcomed the decision to pause short-term let licensing applications for existing operators. It appears that the Scottish Government give with one hand and take away with the other.”

The Highland Council is consulting on draft planning policies to support the Badenoch and Strathspey Short-term Let Control Area. This consultation will help inform the policies to be used in the Planning Control Area now that is has been approved by Scottish Ministers. Please respond to this consultation – find out more here.

In a letter to Highland Council, the Scottish Government confirmed the following:

“TOWN AND COUNTRY PLANNING (SCOTLAND) ACT 1997

TOWN AND COUNTRY PLANNING (SHORT-TERM LET CONTROL AREAS) (SCOTLAND) REGULATIONS 2021: REGULATIONS 3 AND 8
PROPOSED WARD 20 (BADENOCH AND STRATHSPEY) SHORT-TERM LET CONTROL AREA

I refer to your email of 11 August 2022 seeking the approval of Scottish Ministers to designate Ward 20 (Badenoch & Strathspey) of Highland Council area as a Short-term Let Control Area under the terms of the above Regulations.

Scottish Ministers’ Decision

Scottish Ministers have carefully considered all the evidence presented to them including the Council’s Statement of Reasons for the designation and the relevant committee and council meeting reports and minutes.

Circular 1/2021: Establishing a Short-term Let Control Area states that in considering a proposal for a control area, Ministers will seek assurance that the planning authority has: a) taken reasonable steps to raise awareness in the proposed control area(s) and

consulted appropriately;
b) taken account of the views expressed in consultation and considered this with any

other relevant evidence; and
c) come to a reasoned decision as set out in the accompanying statement.

Ministers consider that these points have all been satisfied by the planning authority. The planning authority proposes to designate the control area in order to manage high concentrations of short term lets across the ward, ensure homes and land are used to best effect, and control secondary letting of dwelling houses to protect neighbouring residential amenity. Ministers consider that these are valid reasons to propose the designation, and conclude that the proposed designation would be justified and reasonable.

The Town and Country Planning (Short-term Let Control Areas) (Scotland) Regulations 2021i, read with section 26B(3) of the Town and Country Planning (Scotland) Act 1997 (“the Act”) set out when a short term let is provided.

A change of use of a dwelling house to a short-term let after the designation of the control area will be deemed to be a material change of use by virtue of section 26B of the Act.

Where the change of a dwelling house to a short-term let took place before the designation of the control area the existing rules will apply. These require planning permission for a change of use of property where that change is a material change in the use of the property.

Following the submission of the Council’s request to Ministers, further correspondence has been received from Shepherd & Wedderburn on behalf of Airbnb. Ministers have taken this correspondence into account in this decision on the proposed designation. The correspondence does not alter Ministers’ view that the proposed designation of the STLCA is justified and reasonable.

Accordingly and on the above basis, Scottish Ministers hereby approve the proposed designation of Highland Council Ward 20 (Badenoch & Strathspey) as a Short-Term Let Control Area.

STL-270-001 Decision letter

Making Tax Digital: Delay

Posted on December 20, 2022February 21, 2023 by Fiona Campbell

The Treasury has confirmed a two-year delay to the Making Tax Digital for income tax (MTD ITSA) timetable, with the First Secretary to the Treasury issuing a written statement confirming the changes.

The timetable change followed weeks of urgent calls from professional bodies such as the CIOT, HMRC’s own Administrative Burdens Advisory Board, tax software representatives and practitioners.

Bowing to the inevitable, financial secretary to the Treasury Victoria Atkins released a ministerial statement setting out adjustments to the scope and timing phases of MTD ITSA:

A two-year delay until April 2026 for mandatory MTD ITSA filing.
Minimum income reporting level increased to £50,000
Those earning more than £30,000 mandated to join the scheme in 2027.
The situation for landlords and sole traders earning less than £30,000 will be reviewed to see if MTD ITSA can be shaped to meet the needs of smaller businesses.
Partnerships will not be brought into MTD for ITSA as previously planned in 2025.
Points-based penalty system to be extended to MTD ITSA filers when they join.

While Atkins said the government remains committed to introducing MTD for ITSA to partnerships, the decision on when they might join the scheme will be taken at a later date, as for those on less than £30,000. “The government understands businesses and self-employed individuals are currently facing a challenging economic environment, and that the transition to MTD for ITSA represents a significant change for taxpayers, their agents, and for HMRC,” the minister wrote.

To maximise the benefits of MTD for small business, the government opted to allow more time to prepare, “so that all businesses, self-employed individuals, and landlords within scope of MTD for Income Tax, but particularly those with the smallest incomes, can adapt to the new ways of working.”

The hotly anticipated MTD ITSA reset was inadvertently revealed shortly after 9am on Wednesday 14 December in a gov.uk post announcing an extension to the MTD ITSA pilot scheme that was taken down shortly afterwards. Update emails were also sent detailing the extension. The last time the Treasury faced such a unified chorus was last year, when the previous FST Lucy Frazer announced a 12-month delay to the timetable in September 2021.

With thanks to Brian Wright of FBD Consultancy, Accounts & Tax Ltd for this update.