Last reviewed 24 March 2025

Recent News

27 February 2025 | Scotland – Public consultation launched by the Scottish Government on a potential cruise ship levy which if approved would allow local authorities the discretion to implement (separate to the Visitor Levy). The public consultation closes on 30 May 2025.

24 January 2025 | Edinburgh City Council has approved a Visitor Levy of 5% to be implemented from 24 July 2026. The levy will be applicable at the same rate year-round across the Council area and payable on a stay up to 5 nights (originally proposed 7 nights). Stays from 24 July 2026 booked and paid for (in part or full) on or after 1 October 2025 are subject to the levy. 

16 December 2024 | Liverpool has proposed a ‘City Visitor Charge’ of £2 per room, per night (excluding VAT). 80 properties who are members of the ABID are to vote in April 2025 to potentially implement from 1 June 2025.

Selected destination(s) that have implemented a levy affecting visitors staying overnight in commercial accommodation:

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’ 78 properties (mainly within the A57 (M) ring road) currently meet this criteria.

Proposed 

Liverpool – £2 per room, per night (excluding VAT) potentially from 1 June 2025. Known as the ‘City Visitor Charge‘ would be applicable to 80 properties who are members of the ABID if approved in April 2025 (announcement due on 24 April).

The Welsh Government has introduced draft legislation called the ‘Visitor Accommodation (Register and Levy) Etc. (Wales) Bill’ to the Senedd (Welsh Parliament) in November 2024, to allow local authorities in Wales the discretion to implement a visitor levy if they choose to.

If the Bill is passed (final vote anticipated to be in summer 2025), the earliest a visitor levy could be introduced by any local authority is in 2027.

The levy would be payable by visitors staying overnight in commercial accommodation. Where a local authority decides to implement, the initial proposed amount set nationally would be:

• £0.75 per person per night (excluding VAT) for those staying at campsites (pitches) and hostels.
• £1.25 per person per night (excluding VAT) for those staying in all other visitor accommodation types.

However, the Bill proposes to allow a local authority to add a ‘premium’ to the national flat rate. This can be any amount, but national government may by regulation set a cap.

Further information on the Visitor Levy

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 publicly consult and an 18 month implementation period is required before introduction. As a result, the earliest a visitor will pay the levy is on stays from 24 July 2026 in Edinburgh.

Key points

• The levy amount is calculated as a percentage rate of room cost (excluding VAT), but the calculated levy amount is subject to VAT (20%) when staying in VAT registered properties.
• 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.
• 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.

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)

Council(s) that have decided to implement a Visitor Levy

Edinburgh

From 24 July 2026 – 5% net room rate (year round applicable to whole Council area – max 5 consecutive nights)

• Stays from 24 July 2026 booked and paid for (in part or full) before 1 October 2025 are not subject to the levy.
• Stays from 24 July 2026 booked and paid for (in part or full) on or after 1 October 2025 are subject to the levy. 

Summary of the spending plans for the tax revenue can be seen here. Accommodation providers will be permitted to retain 2% of the levy they collect, in recognition of the collection administration cost.

Once introduced, the Visitor Levy scheme will be reviewed by the City Council every 3 years and any significant changes to the scheme (such as increasing the percentage rate) will be conditional on a further consultation period, in addition to an 18-month implementation period. 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.

Additional information:

Implementation timeline  by Edinburgh City Council (published March 2025)

Presentation from Edinburgh City Council  at ETOA event in Edinburgh on 20 September 2024  (based on Draft Scheme – max number of nights is different)

Councils that have currently proposed to implement a Visitor Levy 

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

• Public consultation (closes on 31 March 2025). If approved, the Visitor Levy may be introduced in autumn 2026.

Argyll and Bute – 5% net room rate (year round applicable to whole Council area)

• Public consultation (closes on 10 April 2025). If approved, the Visitor Levy may be introduced in January 2027.

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

• Public consultation (closes on 2 May 2025). If approved, the Visitor Levy may be introduced in Q1 2027.

Aberdeen – 7% net room rate (year round applicable to whole Council area)

• Public consultation yet to start. If approved, the Visitor Levy may be introduced from 1 April 2027.

Scotland Cruise Ship levy

The Scottish Government launched a public consultation on 27 February 2025 on a potential cruise ship levy which if approved would allow local authorities the discretion to implement (separate to the Visitor Levy).

The public consultation closes on 30 May 2025.

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