A TAX loophole means Scottish taxpayers are subsidising Airbnb property owners in Edinburgh by up to £2.6 million, it has been claimed.
Research published by the short-term rental website suggests hosts in the Scottish capital made £78m from letting out their properties last year.
However, many are paying nothing in council tax for basic services, such as bin collections. The Evening News says the majority – more than 1000 property owners – are declaring their short-term lets to tax officials as a business and paying nothing for local services.
Under current Scottish Government rules, any short-term let which operates for more than 140 days a year does not have to pay council tax and instead becomes liable for business rates. However, small businesses with a rateable value of £15,000 or under are given total relief from business rates.
This means the vast majority of short-term lets in the city which declare themselves as businesses pay no tax to the council whatsoever.
Airbnb said the £2.6m figure was “pure speculation while the Scottish Government said it “does not recognise the figures stated”.
Local Government, Housing and Planning Minister Kevin Stewart said: “While short-term lets can have a positive impact and help boost the tourism economy across all areas of Scotland, we know that they can also create challenges. That’s why we want to ensure short-term lets are regulated appropriately.
“We are grateful for the large number of responses we received to our recent consultation, which we will now consider carefully.
“We do not recognise the figures stated. The Scottish Government is dedicated to delivering a rates regime that is fair and sustainable. This is why we prioritise small businesses by providing a small business bonus scheme which is universally available.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel