Visitor Levy (Scotland) Act 2024

Process

12 Scheme to impose levy

(1) A local authority may—

(a) introduce a scheme or schemes to impose the levy for all or part of its area (referred to in this Act as a “VL scheme”),

(b) modify a VL scheme, or

(c) revoke a VL scheme.

(2) A VL scheme may make different provision for different purposes or different areas within the local authority's area.

(3) Two or more local authorities may act jointly to make a VL scheme.

(4) In those circumstances—

(a) they must continue to act jointly in relation to the scheme in all respects, and

(b) unless the context requires otherwise, a reference in this Act to—

(i) a local authority, in relation to a VL scheme or to a proposed scheme, is a reference to the authorities acting jointly,

(ii) the area of a local authority is a reference to the combined areas of those authorities, and

(iii) the local tourism strategy of a local authority is a reference to any tourism strategy prepared by an authority which is in effect in all or part of the area to which the VL scheme applies.

13 Prior consultation on scheme

(1) Before introducing or modifying a VL scheme, a local authority must—

(a) prepare and publicise—

(i) an outline of the proposed scheme or (as the case may be) the scheme as it is proposed to be modified (“the proposal”),

(ii) a statement about the cases and circumstances under the proposal in which the levy (or a sum equivalent to the levy) is not payable or may be reimbursed,

(iii) a statement about the objectives of the proposal, including how the authority intends to measure and report on the achievement of those objectives, and

(iv) an assessment of the impacts of the proposal in the authority’s area,

(b) consult—

(i) such persons as the authority considers to be representative of communities, businesses engaged in tourism and tourist organisations in its area,

(ii) in the case of a modification of a VL scheme, the VL forum for that scheme as established by the local authority in accordance with section 16(1),

(iii) if any part of the area to which the VL scheme relates has been designated as a National Park, the National Park authority for that Park, and

(iv) such other persons as the authority considers likely to be affected by the proposal,

(c) prepare and publicise a report which—

(i) summarises the consultation responses received,

(ii) states whether or not the authority intends to proceed with the proposal (or the proposal as modified in light of the consultation), and

(iii) sets out the authority's reasons for whether or not it intends to proceed.

(2) For the purposes of subsection (1)(a)(iii) the objectives must relate to developing, supporting or sustaining facilities or services which are substantially for or used by persons visiting the scheme area for leisure or business purposes (or both).

(3) For the purposes of subsection (1)(a)(iv) the assessment must, in particular, set out what the local authority considers to be the likely effects of the proposal on—

(a) persons living within the scheme area, and

(b) such other persons as the authority considers likely to be affected by the proposal.

(4) Before revoking a VL scheme, a local authority must publicise the proposed revocation of the scheme.

14 Required content of a scheme

(1) A VL scheme must specify—

(a) the scheme area,

(b) the date on which the scheme is to come into force,

(c) the scheme period (that is, the period during which the scheme is to remain in force (which may be indefinitely)),

(d) when during the scheme period a purchase of the right to reside in or at overnight accommodation is to give rise to the levy (which may be at all times during the scheme period),

(e) the percentage rate (or rates) of the levy set by the local authority under section 6,

(f) the scheme’s objectives,

(g) arrangements for the review of decisions by the authority in relation to the scheme,

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

(i) that the levy (or a sum equivalent to the levy) is not payable or is to be reimbursed in a case where the visitor or any other person utilising the right to reside in the overnight accommodation is in receipt of benefits, payments or allowances for a disability—

(i) under section 71 of the Social Security Contributions and Benefits Act 1992 (disability living allowance),

(ii) specifically for working age people given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018 (disability assistance),

(iii) under section 64 of the Social Security Contributions and Benefits Act 1992 (attendance allowance),

(iv) specifically for older people given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018 (pension age disability benefit), or

(v) under Part 4 of the Welfare Reform Act 2012 (personal independence payment),

(j) arrangements for the administration of the exemption or reimbursement specified in accordance with paragraph (i), including the evidence required and manner in which it may be demonstrated that a visitor or other person is in receipt of the relevant benefit, payment or allowance,

(k) arrangements for the reimbursement of the levy (or a sum equivalent to the levy) to a visitor who has (or a category of visitors who have) entered into a chargeable transaction, and

(l) the manner in which the authority intends to make decisions on the use of the net proceeds of the scheme.

(2) For the purposes of subsection (1)(h), the VL scheme must specify whether the levy is not payable in relation to accommodation which has an annual turnover below the VAT threshold.

(3) The date on which a VL scheme is to come into force, or on which a significant modification is to take effect, must be at least 18 months after the date on which the local authority publishes a report under section 13(1)(c) stating that it intends to proceed with the original or modified proposal.

(4) In subsection (3), “significant modification” means a modification of a VL scheme which—

(a) expands the scheme area,

(b) increases the percentage rate (or rates) of the levy, or

(c) removes from the VL scheme any cases or circumstances in which the levy (or a sum equivalent to the levy) is not payable or reimbursed.

(5) Any other modification of a VL scheme may come into force on a date specified after the authority publishes a report under section 13(1)(c) stating that it intends to proceed with the original or modified proposal.

(6) The Scottish Ministers may by regulations amend subsection (1) so as to—

(a) add something that a VL scheme must specify, or

(b) remove, or vary the description of, any of the required content of a VL scheme listed in subsection (1) (except subsection (1)(e)).

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

(8) 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.

(9) Regulations under this section are subject to the affirmative procedure.

(10) In this section, “the VAT threshold” means the amount for the time being specified in paragraph 1(1)(a) of schedule 1 of the Value Added Tax Act 1994.

15 Publicity for introduction of scheme

(1) As soon as reasonably practicable after the date of its decision to introduce a VL scheme, the local authority must—

(a) notify the Scottish Ministers of its decision to introduce a VL scheme, and

(b) publicise—

(i) its decision to introduce a VL scheme, and

(ii) the proposed date on which the VL scheme is to come into force.

(2) The Scottish Ministers may by regulations make further provision about how local authorities must publicise the matters mentioned in subsection (1)(b).

(3) Regulations under subsection (2) are subject to the negative procedure. 

16 Visitor levy forum

(1) A local authority operating a VL scheme must—

(a) by no later than 6 months after the date of its decision to introduce a VL scheme, establish a forum for the scheme (“the VL forum”) to carry out the functions set out in subsection (2),

(b) maintain the VL forum for the duration of the scheme, and

(c) ensure that the VL forum—

(i) is able to carry out those functions, and

(ii) meets on a regular basis, being not less than 2 times in each calendar year.

(2) The functions of the VL forum are—

(a) to discuss and advise the authority and any other person or body consulting the forum on matters having to do with the VL scheme,

(b) to discuss and respond to each—

(i) consultation on a modification of the VL scheme under section 13(1)(b), and

(ii) consultation on the use of net proceeds of the VL scheme under section 19(2), and

(c) to discuss and make such representations as are considered appropriate in relation to each—

(i) annual report on the VL scheme under section 20, and

(ii) report setting out the findings of a review of the VL scheme under section 21.

(3) The VL forum is to consist of such persons as are appointed to it by the local authority operating the VL scheme.

(4) The local authority must ensure that the membership of the VL forum—

(a) includes such persons as the authority considers to be representative of communities, businesses engaged in tourism and tourist organisations in its area, and

(b) consists of a reasonable balance of such persons.

(5) The local authority may appoint one or more of its own members to the VL forum, provided that local authority members do not form a majority of the members of the VL forum.

(6) If there is more than one VL scheme for different parts of a local authority area—

(a) more than one VL forum may be established for the area of a local authority, but

(b) a single VL forum may be established for the purposes of this section and the schemes in the different parts of a local authority area.

17 Transitional provision

(1) The levy must not be charged in respect of a chargeable transaction that is paid for (in full or part) before the date of the local authority's decision to introduce a VL scheme.

(2) The levy may be charged in respect of a chargeable transaction that is paid for (in full or in part) after the date of the local authority's decision to introduce a VL scheme but before the date on which the VL scheme comes into force, if the visitor takes entry to the accommodation that the transaction relates to after the date on which the scheme comes into force.