Last reviewed 21 November 2024

Recent News

18 November 2024 | Highland Council has launched a public consultation on their proposed levy on accommodation stays that would start from autumn 2026. Closing date for consultation is 7 February 2025.

23 September 2024 | Edinburgh City Council has launched a public consultation on their proposed levy on accommodation stays expected to begin from (or around) 24 July 2026. Closing date for consultation is 15 December 2024.

22 August 2024 | Edinburgh has announced their (new) proposal at 5% net room rate, following national legislation in Scotland permitting local authorities the discretion to implement a Visitor Levy. A public consultation on this proposal is expected between September-December 2024. Thereafter, the City Council is anticipated to finalise details of the scheme (including percentage rate) in January 2025 and introduce in mid-July 2026.

28 May 2024 | Chester has proposed implementing a visitor charge on overnight visitors. The charge would be £2 per room, per night (excluding VAT) and currently 27 hotels would be affected. This is subject to approval by businesses part of the Accommodation BID. Further information including the list of hotels within scope.

Manchester – £1 per room, per night (excluding VAT) applicable to visitors staying in accommodation establishments with a ratable value of at least £75,000. Known as the ‘City Visitor Charge’ 74 properties (mainly within the A57 (M) ring road) currently meet this criteria (list of properties here). Further information on the levy can be found here.

Bournemouth, Christchurch, Poole – £2 per room, per night (excluding VAT) applicable to visitors staying in accommodation establishments with a ratable value of at least £40,000. Further information on the levy can be found here.

NB Cambridge proposed in March 2024 to implement a visitor charge on overnight visitors from 1 January 2025 but was subject to approval by businesses part of the Accommodation BID. In June/July 2024, the businesses voted against implementing.

The national government has proposed to pass legislation to allow local authorities the discretion to implement a visitor levy should they choose to. It is intended for the visitor levy to be applicable to visitors staying in commercially-let accommodation subject to approval by the Welsh Parliament (Senedd).

Consultation ended in December 2022 and a Bill is currently expected to be introduced to the Senedd in autumn 2024. Due to legislative process, the Welsh Government estimate that (if the Bill is passed) the earliest a visitor levy will be in place in any authority in Wales is in 2027. Further information can be found here.

Visitor Levy (accommodation)

The Visitor Levy (Scotland) Act was passed by the Scottish Parliament in May 2024 and commenced in September 2024. The legislation allows local authorities (councils) in Scotland the discretion to implement a visitor levy on stays in ‘overnight accommodation’ if they choose to. Local authorities deciding to implement must consult locally and an 18 month implementation period is required before introduction. As a result, the earliest a visitor will pay the levy will be in mid-2026.

Originally intended to be introduced in 2020 following public consultation, the Visitor Levy Bill was introduced in May 2023 by the Scottish Government for debate in the Scottish Parliament. ETOA provided evidence to the Local Government, Housing and Parliament committee on our research of tourism taxes in Europe during Stage 1 of the legislative process. Further information on the Bill (as introduced/amendments) can be found here.

Key points on the Visitor Levy

• The levy amount is to be calculated as a percentage rate of room cost (excluding VAT). The percentage rate must be the same across different types of accommodation (e.g. hotels and short-term lets). However, different percentage rates can be set for different areas within the local authority’s area.
• The calculated levy amount is subject to VAT (20%) when staying in VAT registered properties.
• Transitional provision – the levy is applicable for a stay after the introduction date if contracted before the start date but after a Council has formally announced its intention to introduce a Visitor Levy scheme (i.e. after public consultation).
• National exemption applies for a disabled person receiving certain UK disability benefits (para 13.1(ga))
• Local authorities can decide to introduce a cap on the number of nights stayed after which the levy is not applicable. Edinburgh is proposing to cap the payment of the levy to the first 7 consecutive nights.

Further information:

Presentation from Scottish Government at ETOA event in Edinburgh on 20 September 2024.

Guidance for local authorities published by Visit Scotland (includes information on which local authorities are discussing implementation)

Edinburgh

Proposed (new) – 5% net room rate (year round applicable to whole Council area – max 7 consecutive nights)

In January 2025, the scheme including rate will be finalised after public consultation (closes on 15 December 2024). Following an 18 month implementation period, the Visitor Levy is anticipated to be introduced from (or around) 24 July 2026. Summary of the proposed spending plans for the tax revenue can be seen here (more information on pages 36-40).

It is proposed that accommodation providers will be permitted to retain 1.5%-2.5% of the levy they collect, depending on the size of the business, in recognition of the collection administration cost.

Once introduced, the Visitor Levy scheme will be reviewed by the City Council every 3 years and it is proposed any significant changes to the scheme (such as increasing the percentage rate, extending the area applicable) will be conditional on an 18 month implementation period (in effect 2 years due to consultation period required beforehand). Other changes (such as reducing the percentage rate, adding an exemption) will not require an 18 month notice period only the requirement to consult. Therefore, these changes could be implemented within 6 months.

Further information:

Presentation from Edinburgh City Council at ETOA event in Edinburgh on 20 September 2024.

Overview of Edinburgh Visitor Levy Draft Scheme published by Edinburgh City Council

Highland

Proposed – 5% net room rate (year round applicable to whole Council area)

In Spring 2025, the scheme including rate will be decided after public consultation (closes on 7 February). Following an 18 month implementation period, the Visitor Levy is anticipated to be introduced in autumn 2026.

Cruise Ship levy

The Scottish Government are expected to launch a public consultation by end of 2024 on whether to permit a potential cruise ship levy, which may be similar to the Visitor Levy framework applicable to ‘overnight accommodation’. Further information on the consultation will be published on this page when announced.

While best efforts have been made to verify the accuracy of the information, the information displayed should be used as guidance only.