Visitor Levy (Scotland) Act 2024

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.