Caledonian school accepting books it's condemned! (8)
I believe the answer is:
scottish
'caledonian' is the definition.
(Caledonia was the Latin name for Scotland)
'school accepting books it's condemned' is the wordplay.
'school' becomes 'sch'.
'accepting' means one lot of letters goes inside another.
'books' becomes 'ot' (abbreviation for Old Testament).
'condemned' indicates anagramming the letters.
'its' is an anagram of 'tis'.
'ot'+'tis'='ottis'
'sch' enclosing 'ottis' is 'SCOTTISH'.
(Other definitions for scottish that I've seen before include "From north of the border" , "northern folk" , "Caledonian" , "Costs hit this nationality badly" , "From the northern UK" .)