Category: Policy

Call for Evidence on Property Income Tax

Income from residential property owned by individual landlords is taxed under one of two different regimes.

• The general position is that income tax will be due on the profits from renting out the property, after certain allowable deductions. However, residential property mortgage interest relief is restricted to the basic rate of income tax, and there are no specific capital gains reliefs.
• The Furnished Holiday Lettings (FHLs) regime applies to residential property let on short term lets within certain parameters. The income then attracts some additional reliefs as, for example, mortgage interest is fully deductible and capital allowances are available. In addition, Business Asset Disposal Relief is available on gains made when properties are sold.

The OTS is undertaking a review which will consider the current regimes for the taxation of residential property held by individuals, partnerships and micro companies, and develop recommendations for simplification and ways of addressing distortions.

The ASSC and PASC welcome the opportunity to provide evidence to the Call for Evidence on Property Income Tax by the Office of Tax Simplification.

ASSC PASC UK Submission to the Office of Tax Simplification Call for Evidence on Property Income Tax

Local Government Election Manifesto 2022

The Association of Scotland’s Self-Caterers has launched its first-ever local government election manifesto.

Self-Catering: Local, Reliable, Sustainable: The ASSC’s Manifesto for Scotland’s Local Government Elections sets out the association’s four key priorities for Scottish self-catering as it recovers from the impact of the COVID-19 pandemic.

In the manifesto, self-caterers are urging local politicians to commit to minimising the burden of short-term let licensing by working closely with small business, monitoring the impact of the policy, and pledging not to impose additional conditions on already hard-pressed businesses.

The manifesto also calls for an evidence-based approach to the use of short-term let control areas and for such decision-making not to be based on crude hearsay and anecdote.

Additionally, the ASSC is asking those who find themselves in power to reject the introduction of local tourism levies, should the power to do so flow to them from Holyrood.

Finally, Scotland’s self-caterers are imploring local councils to promote self-catering as a sustainable tourism option in their areas, drawing particular attention to the role that the industry has in helping the environment, and local economies, flourish across Scotland.

In launching Self-Catering: Local, Reliable, Sustainable, the ASSC hopes to encourage a step-change in thinking around short-term lets, cut through the often-inaccurate rhetoric surrounding what self-caterers do, and help local governments across Scotland understand and appreciate that there is a bright future for tourism in their areas, with self-catering playing a vital role.

Download the Manifesto: ASSC 2022 Manifesto

Association of Scotland’s Self-Caterers Chief Executive, Fiona Campbell, said:

“I am thrilled to launch our manifesto ahead of these vital local elections.

“Hardworking and dedicated self-caterers across Scotland have had a really tough time throughout the pandemic and we need the help of our local politicians to get us back to doing what we do best.

“I would urge everyone standing in these elections to consider our moderate, sensible, and evidence-backed proposals and to think about the benefits that they will have for the communities they wish to represent.”

ASSC Response to the National Planning Framework (NPF4) Consultation

The Association of Scotland’s Self-Caterers (ASSC) welcomes the opportunity to respond to the Scottish Government’s consultation on the fourth National Planning Framework (NPF4).

We have restricted our submission to commenting on the following section – Policy: 17 Sustainable Tourism.

We would remind policymakers that the traditional self-catering sector is dealing with an increased regulatory burden – through the introduction of a mandatory licensing system as well as planning control areas – in what are already challenging circumstances for Scottish tourism. Taken collectively, we have already argued in numerous consultation responses that these policies will entail a materially negative impact for Scotland’s tourism sector, will cost jobs and livelihoods, and will reduce the number of short-term lets available without increasing housing provision.

The ASSC firmly believes that there should be no further short-term let regulations in Scotland until the cumulative effect of licensing and control areas has been fully analysed to ensure there are no unintended consequences and that they are clearly meeting policy objectives. There needs should be clear evidence that existing planning law, including control areas and local development plans, has improved access to affordable housing. To this end, the ASSC have submitted metrics to the Scottish Government’s Short-Term Let Working Group in respect of the upcoming review in Summer 2023 of short-term let licensing.

National Planning Framework 4 – ASSC response

18th March 2022