Chapter 1 – Application, Operation and Rates of Levy
Section 28 – Power of principal council to introduce levy on overnight stays in visitor accommodation
80.This section enables principal councils to introduce a visitor levy (”the visitor levy”) on overnight stays in visitor accommodation located within its area. The visitor levy is to be collected and managed by WRA on behalf of principal councils that introduce the visitor levy.
Section 29 – Overnight stays in visitor accommodation
81.An overnight stay in visitor accommodation forms the basis of the visitor levy, and subsection (1) defines when an overnight stay takes place namely when one or more people stay one or more nights under a contract at premises within a principal council area that has introduced the levy. The stay must be provided in the course of trade or business, and the accommodation must not the sole or main residence of the one or more persons.
82.Subsection (2) lists circumstances when an overnight stay in visitor accommodation does not take place. These circumstances include stays longer than 31 nights and accommodation arranged under the legislation listed (which relate to homelessness, immigration and asylum, and bail and probation). Subsection (3) provides that, where a person stays in visitor accommodation under an employment contract, contract for services or contract of apprenticeship with the VAP, no overnight stay takes place. Subsection (5) gives a power to the Welsh Ministers, by regulations, to amend the descriptions of circumstances in which an overnight stay in visitor accommodation does or does not take place. Regulations made under this power are subject to the affirmative procedure in the Senedd.
83.Under subsection (6) the Welsh Ministers may also, by regulations, make provision about the ways in which it may be proved that an overnight stay in visitor accommodation did not take place because the accommodation falls within subsection (2)(b). This could include provision about documents or other information that can be relied upon to prove that an overnight stay did not take place; and the making of arrangements for and relating to the issuing of vouchers that can be used to prove that an overnight stay in visitor accommodation did not take place. Regulations made under this power are subject to the affirmative procedure in the Senedd.
Section 30 – Liability to pay the levy
84.This section sets out that the person that is liable to pay the visitor levy on an overnight stay in visitor accommodation is the VAP. The point at which the liability to pay the visitor levy arises is when the entitlement under the contract to reside in or at the visitor accommodation ceases. This will generally be the point of departure of the final visitor entitled to reside under the contract.
85.Although liability rests with a VAP to pay the visitor levy, they are able to recover the liability from their visitors as part of their contractual terms should they wish. A VAP can therefore decide when and how to pass these costs on to visitors, be that at point of payment by a visitor, arrival at the visitor accommodation or departure from the visitor accommodation. The provider is ultimately liable and must ensure the amount they pay to WRA is correct.
Section 31 – Calculating the amount of the levy that is payable
86.This section sets out the method for calculating the amount of visitor levy that is chargeable in respect of a stay. The amount of visitor levy is calculated by establishing the number of leviable nights, and multiplying that number by the visitor levy rate that applies in relation to the accommodation. The two rates are set out in section 32 (the lower and higher rates).
87.When only one person was entitled to reside under the contract, then the total number of leviable nights is the number of nights that person was entitled to stay. When more than one person was entitled to stay under the contract, the calculation of leviable nights must be undertaken for each person and then added together to provide the total number of leviable nights.
88.Persons under the age of 18 staying in lower rated visitor accommodation are not included in the calculation of the amount of visitor levy payable in relation to the stay.
89.The section also states that if under a contract at least one person’s stay would be subject to the higher rate and at least one person’s stay would be subject to the lower rate, then liability is calculated by calculating the amounts of visitor levy payable separately and then adding them together. By way of example, this situation would arise where, under one contract with a VAP that provides both camping and self-catering accommodation in chalets, a person has arranged for some people to stay in a chalet and for some people to camp (see subsection (5)).
90.The Welsh Ministers may amend this section to make further provision about people who are not to be included in a calculation of the amount of visitor levy payable. These amendments may relate to overnight stays subject to the higher or lower rate, or both. Regulations made under this power are subject to the affirmative procedure in the Senedd.
Section 32 – Rates of the levy
91.This section sets out the two rates of the visitor levy; the lower rate is £0.75, the higher rate is £1.30. However, these rates are subject to any additional amount added by a principal council (see section 34).
92.The Welsh Ministers may amend the lower, higher or both rates by regulations. Regulations made under this power are subject to the affirmative procedure in the Senedd.
Section 33 – Determining which rate applies
93.This section specifies which types of visitor accommodation are subject to the lower and higher rates of the visitor levy. The lower rate applies to stays in visitor accommodation that is a pitch or area provided for camping, or a dormitory or other room or area normally provided on the basis that it may be shared with other people residing in that dormitory or other room or area under a different contract. For example, the lower rate would apply to a bed in a shared dormitory in a hostel provided for an overnight stay or a camping pitch. The higher rate applies to all other types of visitor accommodation.
94.The Welsh Ministers may, by regulations, amend which rate applies in relation to a particular type or description of visitor accommodation. Regulations made under this power are subject to the affirmative procedure in the Senedd.
Section 34 – Adding an additional amount to a levy rate
95.This section sets out that the Welsh Ministers may by regulations provide that a principal council may add an additional visitor levy amount to the lower and/or the higher rates, which may be expressed as a fixed or percentage amount.
96.Regulations made by Welsh Ministers under this section may allow a principal council to add an additional amount of visitor levy that is less than the amount specified in the regulations, and/or allow a principal council to add an additional amount in relation to only certain parts of its area or different amounts in relation to different areas. Regulations may also specify, or allow councils to specify, periods during which the additional amount does not apply, or when an additional amount that is less than specified in the regulations applies.
97.Subsection (4) sets out consultation requirements before the Welsh Ministers make regulations under this section. Regulations made under this section are subject to the affirmative procedure in the Senedd.
Section 35 – Application for repayment of amount equivalent to the levy
98.This section makes provision about the circumstances in which a person may apply for a repayment of an amount equivalent to the visitor levy payable (a “levy repayment”) in respect of an overnight stay in visitor accommodation that has taken place - in effect a ‘refund’ of all or part of the amount.
99.The section states that WRA may make a levy repayment if an application is made by a person that, under a contract, provided consideration in respect of an overnight stay and that the application is made before the end of the period of 90 days, beginning with the last day a person was entitled under the contract to stay.
100.A person may apply to WRA for a levy repayment in the following circumstances:
a person stayed overnight under the contract because they were unable to reside in their sole or main residence due to a risk to their health, safety or welfare (subsection (3)(a)),
a person stayed overnight under the contract because, at the time of the stay, they were otherwise homeless within the meaning of section 55 of the Housing (Wales) Act 2014 (subsection (3)(b)), or
a person who stayed overnight under the contract accompanied a person in receipt of a disability benefit (defined in section 35(7)) provided care, support or assistance to that person in the same premises and subsection (3) does not apply (subsection (4)).
101.Subsection (5) sets out that if WRA considers that an application has been made by a person who is eligible for a refund under subsection (3), WRA must repay an amount equivalent to the visitor levy payable for the stay. The repayment amount may be varied by WRA depending on the number of people who stayed and whether they were all eligible and the number of nights for which they were eligible for a refund.
102.Subsection (6) provides the same provision in effect ( as subsection (5)) in relation to the refund in respect of a person who provided care, support or assistance to a person in receipt of disability benefit (subsection (4)) but has been dealt with separately (from subsection (5)) to ensure that the repayment is limited to visitor levy paid in respect of a person providing care, support or assistance .
103.For example, a person may not be providing care, support or assistance to a person in receipt of a disability benefit for the entire duration of their stay. In which case, WRA must consider which nights qualify for a refund.
104.The Welsh Ministers may amend the section to add, remove, or change descriptions of circumstances in which WRA may or must make a repayment of a visitor levy amount, and to amend the definition of ”disability benefit”. Regulations made under this power are subject to the affirmative procedure in the Senedd.
