Visitor Levy (Scotland) Act 2024

Part 2 Key concepts

Basis and calculation of levy

3 Levy to be charged on purchase of overnight accommodation

(1) The levy—

(a) is to be charged in respect of a chargeable transaction, and

(b) becomes payable when a person takes entry to the overnight accommodation in pursuance of the transaction (such a person is referred to in this Act as a “visitor”).

(2) In this Act, a “chargeable transaction” is a purchase for value of the right to reside in or at overnight accommodation situated within the area to which a VL scheme relates for a period of one or more nights (see section 12(1)(a) for the meaning of a VL scheme).

(3) For the purpose of subsection (2), a reference to a night is a reference to—

(a) any continuous period of 6 or more hours between 12 noon on one day and 12 noon on the following day which includes midnight, or

(b) any combination of two or more individual periods totalling 6 hours or more where—

(i) the combined period occurs between 12 noon on one day and 12 noon on the following day, and

(ii) at least one of the individual periods begins before midnight and at least one of the individual periods ends after midnight.

4 Meaning of overnight accommodation

(1) In this Act, “overnight accommodation” means a room or area provided to a visitor for residential purposes in or at a type of accommodation listed in subsection (2) otherwise than as the visitor's only or usual place of residence.

(2) The types of accommodation are—

(a) hotels,

(b) hostels,

(c) guest houses,

(d) bed and breakfast accommodation,

(e) self catering accommodation,

(f) camping sites,

(g) caravan parks,

(h) accommodation in a vehicle, or on board a vessel, which is permanently or predominantly situated in one place,

(i) any other place at which a room or area is offered by the occupier for residential purposes otherwise than as a visitor’s only or usual place of residence.

(3) But none of the types of accommodation in subsection (2) includes—

(a) a local authority gypsy and traveller site or a registered social landlord gypsy and traveller site (those expressions having the same meaning as in Part 1 of schedule 1 of the Mobile Homes Act 1983), or

(b) accommodation in a vehicle, or on board a vessel, that is undertaking a journey involving one or more overnight stops.

(4) The Scottish Ministers may, by regulations, amend this section so as to—

(a) add a type of accommodation to those included in subsection (2) or (3),

(b) vary the description of a type of accommodation included in subsection (2) or (3), or

(c) remove a type of accommodation from being included in subsection (2) or (3).

(5) Before making regulations under subsection (4), the Scottish Ministers must consult—

(a) local authorities,

(b) such persons as they consider to be representative of communities, businesses engaged in tourism and tourist organisations, and

(c) such other persons as they consider appropriate.

(6) Regulations under subsection (4) are subject to the affirmative procedure.

5 Calculation of levy

(1) The amount of the levy chargeable in respect of a chargeable transaction is calculated by—

(a) taking the accommodation portion of the transaction, and

(b) multiplying that amount by the percentage rate set by a local authority under section 6.

(2) In subsection (1), the “accommodation portion” means the amount of the chargeable transaction that is attributable to the provision of the overnight accommodation.

(3) In particular, the accommodation portion does not include any amount reasonably attributable to the provision of—

(a) meals or drinks,

(b) parking for a motor vehicle (other than a parking area provided as overnight accommodation in respect of the transaction),

(c) laundry facilities or services,

(d) entertainment,

(e) transportation to or from the accommodation.

(4) The Scottish Ministers may, by regulations, amend subsection (3) so as to add to, remove, or vary the description of, the facilities or services listed.

(5) Regulations under subsection (4) are subject to the negative procedure.

6 Rate for levy

(1) A local authority seeking to introduce a VL scheme must set the percentage rate of the levy chargeable in respect of a chargeable transaction.

(2) The percentage rate set under subsection (1)—

(a) may be different for different purposes or different areas within the local authority’s area, but

(b) may not be different in relation to different types of overnight accommodation.

(3) The Scottish Ministers may by regulations specify the maximum percentage rate which a local authority may set under subsection (1).

(4) Regulations under subsection (3)—

(a) may specify different maximum percentage rates for different purposes, but

(b) may not specify different maximum percentage rates for different areas.

(5) Before making regulations under subsection (3), the Scottish Ministers must consult—

(a) local authorities,

(b) such persons as they consider to be representative of communities, businesses engaged in tourism and tourist organisations, and

(c) such other persons as they consider appropriate.

(6) Regulations under subsection (3) are subject to the affirmative procedure.

7 Maximum number of nights of overnight accommodation

(1) A local authority seeking to introduce a VL scheme may specify that a maximum number of nights may apply in respect of a chargeable transaction for the right to reside in or at that accommodation for a period of consecutive nights.

(2) A local authority may only specify a maximum number of nights under subsection (1) if it has consulted—

(a) such persons as they consider to be representative of communities, businesses engaged in tourism and tourist organisations, and

(b) such other persons as they consider appropriate.

8 Person liable to pay levy

The person liable to pay the levy charged in respect of a chargeable transaction is the person who—

(a) provides overnight accommodation to a visitor in pursuance of the transaction, and

(b) is the occupier of the premises at which that overnight accommodation is provided (such a person is referred to in this Act as “the liable person”).

9 Third party arrangements

(1) The liable person may make arrangements for a person to—

(a) collect a sum equivalent to the amount of the levy from visitors taking entry to overnight accommodation in pursuance of a chargeable transaction, 

(b) make returns to a relevant local authority in accordance with section 26 (see section 24(2) for the meaning of relevant local authority),

(c) pay the levy to a relevant local authority in accordance with section 29,

on behalf of the liable person.

(2) Returns may be made by a person in pursuance of an arrangement under subsection (1)(b) only with the consent of the relevant local authority.

(3) The making of an arrangement under subsection (1) does not affect the liable person's obligations under this Act.

10 Billing of overnight accommodation

(1) The Scottish Ministers may, by regulations, specify requirements for the billing of overnight accommodation in respect of chargeable transactions.

(2) Regulations under subsection (1) may, in particular, require persons to—

(a) issue an invoice to a visitor entering into a chargeable transaction, which specifies separately—

(i) the cost of the overnight accommodation purchased,

(ii) the percentage rate of the levy chargeable in respect of the transaction,

(iii) the amount of the accommodation portion of the transaction and any deduction made under section 5(1)(b), and

(iv) the amount of levy chargeable in respect of the transaction.

(b) publish the cost (or costs) of overnight accommodation made available for purchase by the liable person, specifying separately—

(i) the amount attributable to the accommodation portion of the accommodation and any deduction made under section 5(1)(b),

(ii) the percentage rate of the levy chargeable in respect of the accommodation, and

(iii) the amount of levy chargeable in respect of the accommodation.

(3) Regulations under subsection (1) are subject to the negative procedure.

(4) In this section, the “accommodation portion” has the meaning given by section 5(2) and (3).

Exemptions and rebates

11 Exemptions and rebates

(1) The Scottish Ministers may by regulations—

(a) specify the cases or circumstances in which the levy (or a sum equivalent to the amount of the levy) is not payable or may be reimbursed,

(b) provide for the making of arrangements for the issuing of exemption vouchers to categories of visitors specified in the regulations who may enter into a chargeable transaction, for the purpose of demonstrating the application of circumstances in which a chargeable transaction is not subject to the levy.

(2) Without prejudice to the generality of subsection (1), regulations may specify a maximum number of nights of overnight accommodation for the purposes of applying, where a chargeable transaction is for the right to reside in or at that accommodation for period of consecutive nights, an exemption or rebate to the part of the levy which is attributable to any nights in excess of that maximum.

(3) Regulations specifying a maximum number in accordance with subsection (2) may in particular provide—

(a) that a maximum number of nights may apply in respect of a single chargeable transaction or more than one chargeable transaction which relate to the right to reside in or at the same overnight accommodation for a number of consecutive nights,

(b) the method by which the maximum is to be used to calculate the accommodation portion of a transaction and the amount of the levy (for example by disregarding nights beyond the maximum or by applying an average).

(4) Regulations specifying a maximum number in accordance with subsection (2)—

(a) may specify different maximum numbers of nights for different purposes, but

(b) may not specify different maximum numbers of nights for different areas.

(5) Before making regulations under this section, the Scottish Ministers must consult—

(a) local authorities,

(b) such persons as they consider to be representative of communities, businesses engaged in tourism and tourist organisations, and

(c) such other persons as they consider appropriate.

(6) Regulations under subsection (1) are subject to the affirmative procedure.