Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025

CHAPTER 1 APPLICATION, OPERATION AND RATES OF LEVY

Principal council’s power to introduce visitor levy in its area

28 Power of principal council to introduce levy on overnight stays in visitor accommodation

(1) A principal council may (in accordance with Chapter 4) introduce a levy on overnight stays in visitor accommodation in its area.

(2) A levy that is payable by virtue of this Part is to be known as a “visitor levy” (and is referred to in this Act as “the levy”).

(3) References in this Chapter to “visitor accommodation” (except in section 33(3)) are to visitor accommodation provided at premises in the area of a principal council that has introduced the levy.

(4) The levy is to be collected and managed on behalf of a principal council by the Welsh Revenue Authority, in accordance with this Act and the Tax Collection and Management (Wales) Act 2016 (anaw 6).

Application and operation of the levy

29 Overnight stays in visitor accommodation

(1) For the purposes of this Part, an overnight stay in visitor accommodation takes place if—

(a) one or more people are entitled, under a contract, to reside for one or more nights in or at visitor accommodation at premises in the area of a principal council that has introduced the levy,

(b) the accommodation is provided to those people in the course of trade or business carried on by the visitor accommodation provider,

(c) the accommodation is not the sole or main residence of any of those people, and

(d) any of those people enters the accommodation in pursuance of the contract.

(2) But an overnight stay in visitor accommodation does not take place if—

(a) the contract entitles one or more particular individuals to reside in or at the visitor accommodation (whether or not with any other person), and every particular individual is entitled under the contract to reside there—

(i) for more than 31 nights (whether or not those nights are consecutive), and

(ii) on every night on which the contract grants an entitlement to reside at that accommodation;

(b) the accommodation—

(i) is arranged by or provided on behalf of a principal council (as a local housing authority) under Part 2 of the Housing (Wales) Act 2014 (anaw 7) (homelessness);

(ii) is provided under section 4 (accommodation) or Part 6 (support for asylum-seekers, etc.) of the Immigration and Asylum Act 1999 (c. 33);

(iii) is provided on behalf of the Secretary of State in connection with a requirement imposed under section 3(6) (general provisions) of the Bail Act 1976 (c. 63);

(iv) is provided under Part 1 (arrangements for the provision of probation services) of the Offender Management Act 2007 (c. 21) for the probation purposes (within the meaning of section 1 of that Act);

(v) relates to facilities provided under paragraph 9 of Schedule 10 (immigration bail) to the Immigration Act 2016 (c. 19) for the accommodation of a person at an address specified in an immigration bail condition.

(3) In this section, “contract” does not include a contract of service, contract of apprenticeship, or a contract for services under which a person entitled to reside in or at the visitor accommodation provides services to the visitor accommodation provider.

(4) The visitor accommodation provider, in respect of an overnight stay in visitor accommodation, is the visitor accommodation provider that—

(a) provides the accommodation in or at which the stay takes place, and

(b) is an occupier of the premises at which that accommodation is provided.

(5) The Welsh Ministers may by regulations amend this section for the purposes of adding, removing or changing descriptions of circumstances in which an overnight stay in visitor accommodation does or does not take place.

(6) The Welsh Ministers may by regulations make provision about 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), including provision about—

(a) documents or other information that can be relied on to prove that an overnight stay in visitor accommodation did not take place;

(b) 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.

30 Liability to pay the levy

(1) The person liable to pay the levy on an overnight stay in visitor accommodation is the visitor accommodation provider.

(2) Liability to pay the levy on an overnight stay in visitor accommodation arises when‍ (the overnight stay having taken place) the entitlement under the contract to reside in or at the accommodation ceases.

31 Calculating the amount of levy that is payable

(1) The amount of levy payable in respect of an overnight stay in visitor accommodation is calculated by—

(a) determining the total number of leviable nights (see subsections (2) to (4)), then

(b) multiplying the total number of leviable nights by the levy rate that applies in relation to the accommodation (see subsection (5) and section 33).

(2) Where only one person was entitled under the contract to reside overnight in or at the accommodation, the total number of leviable nights is the number of nights that person was so entitled.

(3) Where more than one person was entitled under the contract to reside in or at the accommodation, the total number of leviable nights is determined by—

(a) calculating the number of nights each person was entitled under the contract to reside overnight in or at the accommodation, and

(b) adding together the numbers calculated under paragraph (a).

(4) Where the lower rate of the levy applies in relation to the accommodation, the references in subsections (2) and (3) to “person” do not include a person who was aged under 18 at the start of the first night that person was entitled under the contract to reside overnight in or at the accommodation.

(5) Where, under the contract, at least one person was entitled to reside in or at visitor accommodation to which the higher rate applies and at least one person was entitled to reside overnight in or at visitor accommodation to which the lower rate applies (see section 33), the amount of levy payable is calculated by—

(a) carrying out the calculation under subsection (1) in respect of the accommodation in relation to which the higher rate applies, and

(b) carrying out that calculation in respect of the accommodation in relation to which the lower rate applies,

and adding together the amounts resulting from both calculations.

(6) The Welsh Ministers may by regulations amend this section for the purpose of making additional or different provision about people who are not to be included in a calculation of the amount of levy payable in respect of an overnight stay in visitor accommodation; and regulations under this subsection may make provision that applies in relation to either or both of—

(a) overnight stays in visitor accommodation in relation to which the lower rate of the levy applies;

(b) overnight stays in visitor accommodation in relation to which the higher rate of the levy applies.

Levy rates

32 Rates of the levy

(1) The rates of the levy are as follows—

(a) the lower rate is £0.75, and

(b) the higher rate is £1.30,

but this is subject to any additional amount that may be added by a principal council (see section 34).

(2) The Welsh Ministers may by regulations amend subsection (1)(a) or (b) to set the amount of either or both of—

(a) the lower rate of the levy;

(b) the higher rate of the levy.

33 Determining which rate applies

(1) The lower rate of the levy applies in relation to an overnight stay in visitor accommodation that is—

(a) a pitch or area provided for camping, or

(b) 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.

(2) The higher rate of the levy applies in relation to an overnight stay in all other visitor accommodation.

(3) The Welsh Ministers may by regulations amend subsection (1) or (2) to—

(a) add a type of visitor accommodation or accommodation of a particular description;

(b) vary a description of visitor accommodation or of a type of visitor accommodation;

(c) remove a type of visitor accommodation or accommodation of a particular description.

34 Adding an additional amount to a levy rate

(1) The Welsh Ministers may by regulations provide that principal councils may (in accordance with Chapter 4) add an amount specified in the regulations to either or both of—

(a) the lower rate of the levy payable in the council’s area;

(b) the higher rate of the levy payable in the council’s area.

(2) An amount specified under subsection (1) may be expressed as a percentage of the levy rate in question.

(3) Regulations under subsection (1) may, in particular, make provision—

(a) about whether, and the extent to which, a principal council may add an amount to a levy rate that is less than the amount specified in the regulations;

(b) enabling a principal council—

(i) to add an amount to the levy only in relation to a part or parts of its area;

(ii) to add different amounts to the levy (that are less than the amounts specified in the regulations) in relation to different parts of its area;

(c) specifying periods of time, or enabling a principal council to specify periods of time, during which—

(i) the additional amounts do not apply;

(ii) an additional amount that is less than the amount specified in the regulations applies.

(4) Before making regulations under subsection (1), the Welsh Ministers must consult—

(a) every principal council;

(b) every National Park authority for a National Park in Wales;

(c) organisations that—

(i) represent businesses that work in tourism, or are engaged in activities related to tourism, in Wales;

(ii) promote or facilitate tourism in Wales;

(d) such other persons as they consider appropriate.

Repayment of amount equivalent to the levy

35 Application for repayment of amount equivalent to the levy

(1) In this section, “levy repayment” means a payment to a person by the Welsh Revenue Authority (“WRA”), under subsection (5) or (6), of a sum equivalent to all or part of the amount of levy payable in respect of an overnight stay in visitor accommodation that has taken place.

(2) WRA may make a levy repayment in respect of an overnight stay only if—

(a) an application for a levy repayment is made to WRA—

(i) by a person that, under a contract, provided consideration in respect of the overnight stay, and

(ii) before the end of the period of‍ 90 days beginning with the last day a person was entitled under the contract to reside in or at the visitor accommodation, and

(b) WRA considers that subsection (3) or (4) applies in relation to the contract.

(3) This subsection applies in relation to a contract if a person stayed overnight in or at the visitor accommodation under the contract because that person—

(a) was unable to reside in their sole or main residence due to a risk to their health, safety or welfare, or

(b) was, at the time of the stay, otherwise homeless (within the meaning of section 55 of the Housing (Wales) Act 2014 (anaw 7)).

(4) This subsection applies in relation to a contract if—

(a) a person (“P”)—

(i) stayed overnight in or at the visitor accommodation under the contract,

(ii) during the stay, accompanied a person in receipt of a disability benefit (“A”) and provided care, support or assistance to A, and

(iii) the visitor accommodation was at the same premises as the visitor accommodation that A stayed in or at (whether or not P stayed in or at the accommodation under the same contract as A), and

(b) subsection (3) does not apply in relation to the contract.

(5) Where WRA considers that an application has been made as described in subsection (2)(a) and that subsection (3) applies to the contract, WRA must either—

(a) pay to the applicant an amount equivalent to the amount of levy payable in respect of the stay, or

(b) where WRA considers that payment should not be made in relation to—

(i) every person who stayed overnight in or at the visitor accommodation under the contract;

(ii) every night on which one or more people stayed overnight in or at the visitor accommodation under the contract,

pay to the applicant an amount equivalent to the amount of levy payable in relation to each person and each night in respect of which WRA considers payment should be made.

(6) Where WRA considers that an application has been made as described in subsection (2)(a) and that subsection (4) applies to the contract, WRA must either—

(a) pay to the applicant an amount equivalent to the amount of levy payable in relation to P’s stay, or

(b) where WRA considers that payment should not be made in relation to every night on which P stayed overnight in or at the visitor accommodation under the contract, pay to the applicant an amount equivalent to the amount of levy payable in relation to the night or nights—

(i) on which P stayed overnight, and

(ii) in respect of which WRA considers payment should be made.

(7) In subsection (4)(a)(ii), “disability benefit” means—

(a) a disability living allowance under section 71 of the Social Security Contributions and Benefits Act 1992 (c. 4) or section 71 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7);

(b) a personal independence payment under the Welfare Reform Act 2012 (c. 5) or Part 5 of the Welfare Reform (Northern Ireland) Order 2015 (S.I. 2015/2006 (N.I. 1));

(c) an attendance allowance under section 64 of the Social Security Contributions and Benefits Act 1992 or section 64 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

(d) a constant attendance allowance under section 104 of the Social Security Contributions and Benefits Act 1992 or section 104 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

(e) an adult disability payment under the Disability Assistance for Working Age People (Scotland) Regulations 2022 (S.S.I. 2022/54) or the Disability Assistance for Working Age People (Transitional Provisions and Miscellaneous Amendment) (Scotland) Regulations 2022 (S.S.I. 2022/217);

(f) a child disability payment under the Disability Assistance for Children and Young People (Scotland) Regulations 2021 (S.S.I. 2021/174);

(g) an armed forces independence payment under article 24A of the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011 (S.I. 2011/517);

(h) a constant attendance allowance under—

(i) article 14 or 43 of the Personal Injuries (Civilians) Scheme 1983 (S.I. 1983/686);

(ii) article 8 of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006 (S.I. 2006/606);

(i) a mobility supplement under—

(i) article 25A or 48A of the Personal Injuries (Civilians) Scheme 1983 (S.I. 1983/686);

(ii) article 20 of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006 (S.I. 2006/606).

(8) The Welsh Ministers may by regulations amend this section for the purposes of—

(a) adding, removing or changing descriptions of circumstances in which WRA may or must make a levy repayment;

(b) amending the definition of “disability benefit”.