Visitor Levy (Scotland) Act 2024

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14Required content of a schemeS

This section has no associated Explanatory Notes

(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)),

[F1(d)when, during the scheme period, the taking of entry to overnight accommodation in exercise of the right to reside in or at the accommodation is to give rise to the levy (which may be at all times during the scheme period),]

[F2(da)the basis on which the levy is to be charged in respect of each chargeable transaction to which the scheme relates in accordance with section 4A,]

[F3(e)either (as the case may be)—

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

(ii)the fixed amount (or amounts) of the levy set by the local authority under section 6A,]

(f)the scheme’s objectives,

[F4(fa)whether liable persons are permitted to deduct and retain an amount from the levy payable in respect of a chargeable transaction (not exceeding the permitted deduction set under section 12A(2)) and, if so, the amount of the permitted deduction,]

(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 [F5entitled to] benefits, payments or allowances F6...—

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

(ii)F7... 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),

F8(iv). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

[F9(vi)by way of war disablement pension, meaning—

(A)any retired pay, pension or allowance granted in respect of disablement under powers conferred by or under the Air Force (Constitution) Act 1917, the Personal Injuries (Emergency Provisions) Act 1939, the Pensions (Navy, Army, Air Force and Mercantile Marine) Act 1939, the Polish Resettlement Act 1947, or Part 7 or section 151 of the Reserve Forces Act 1980, or

(B)without prejudice to the generality of sub-sub-paragraph (A), any retired pay or pension to which any of paragraphs (a) to (f) of section 641(1) of the Income Tax (Earnings and Pensions) Act 2003 applies,

(vii)by way of war pensioners’ mobility supplement within the meaning of—

(A)the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983 (“1983 Order”),

(B)the Personal Injuries (Civilians) Scheme 1983,

(C)the 1983 Order by virtue of the War Pensions (Naval Auxiliary Personnel) Scheme 1964,

(D)the Pensions (Polish Forces) Scheme 1964,

(E)the War Pensions (Mercantile Marine) Scheme 1964, or

(F)an Order of His Majesty in relation to the Home Guard dated 21 or 22 December 1964, or in relation to the Ulster Defence Regiment dated 4 January 1971,

(viii)referred to in section 30A of the Social Security Contributions and Benefits Act 1992 (incapacity benefit),

(ix)under Part 5 and section 103 of the Social Security Contributions and Benefits Act 1992 (industrial injuries disablement benefit),

(x)referred to in sections 68 and 69 of the Social Security Contributions and Benefits Act 1992 (severe disablement allowance),

(xi)under Part 1 of the Welfare Reform Act 2007 (employment and support allowance),

(xii)paid in accordance with article 24A of the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011 (armed forces independence payment), or

(xiii)awarded by virtue of section 12(2)(b) of the Welfare Reform Act 2012,]

[F10(ia)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 a person—

(i)to whom any of the following apply—

(A)Title III of Part 2 of the EU withdrawal agreement,

(B)Part 3 or Article 23(4) of the Swiss citizens’ rights agreement within the meaning of section 39(1) of the European Union (Withdrawal Agreement) Act 2020 (“the 2020 Act”),

(C)Title III of the EEA EFTA separation agreement (within the meaning of section 39(1) of the 2020 Act),

(D)the agreement constituted by the exchange of letters set out in the schedule of the Family Allowances, National Insurance and Industrial Injuries (Gibraltar) Order 1974, or

(E)the agreement constituted by the exchange of letters set out in the schedule of the Social Security (Gibraltar) Order 2024,

(ii)to whom any of the following apply by virtue of one of the agreements referred to in sub-paragraph (i)—

(A)Council Regulation (EC) No 1408/71 of 14 June 1971 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community,

(B)Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems, or

(C)in relation to an individual to whom the agreement constituted by the exchange of letters set out in the schedule of the Family Allowances, National Insurance and Industrial Injuries (Gibraltar) Order 1974, or the Social Security (Gibraltar) Order 2024 applies, a Regulation mentioned in sub-sub-paragraph (A) or (B) as it forms part of domestic law by virtue of section 3 of the European Union (Withdrawal) Act 2018,

(iii)who is resident in the United Kingdom, and

(iv)who is entitled by virtue of an agreement referred to in sub-paragraph (i) to a benefit, payment or allowance equivalent to those listed in paragraph (i), under the legislation of—

(A)Switzerland,

(B)an EEA state, or

(C)Gibraltar,

(ib)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 a person—

(i)to whom the Convention on Social Security between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Ireland signed at Dublin on 1 February 2019, as modified from time to time in accordance with any provision of it, applies,

(ii)who is resident in the United Kingdom, and

(iii)who is entitled by virtue of the agreement referred to in sub-paragraph (i) to a benefit, payment or allowance equivalent to those listed in paragraph (i) under the legislation of Ireland,

(ic)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 a person who is—

(i)resident in the United Kingdom, and

(ii)entitled to a benefit, payment or allowance equivalent to those listed in paragraph (i) under the legislation of Northern Ireland,]

(j)arrangements for the administration of the exemption or reimbursement specified in accordance with [F11paragraphs (i) to (ic)], including the evidence required and manner in which it may be demonstrated that a visitor or other person is [F12entitled to] the relevant benefit, payment or allowance,

(k)arrangements for the reimbursement of the levy (or a sum equivalent to the levy) to a [F13person who has (or a category of persons who have) entered into a chargeable transaction or a subsequent 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 F14... 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.

[F15(3A)If a VL scheme is in force, the date on which a significant modification of the scheme is to take effect—

(a)in the case of a modification of the type mentioned in paragraph (a) or (c) of subsection (4), 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,

(b)in the case of a modification of the type mentioned in paragraph (b), (ba) or (bb) of subsection (4), must be at least 6 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.

(3B)If a VL scheme is not yet in force, the date on which a significant modification of the scheme 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 [F16subsections (3A) and (3B)], “significant modification” means a modification of a VL scheme which [F17does any of the following]—

(a)expands the scheme area,

[F18(b)in the case of a VL scheme under which the levy to be charged is based on a percentage rate (or percentage rates), increases the percentage rate (or rates) of the levy,

(ba)in the case of a VL scheme under which the levy to be charged is a fixed amount (or fixed amounts), increases the fixed amount (or amounts) of the levy,

(bb)changes the basis on which the levy is to be charged from that mentioned in paragraph (a) of section 4A(2) to that mentioned in paragraph (b) of that subsection (or vice versa),]

(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.

Textual Amendments

F1S. 14(1)(d) substituted (21.7.2026) by Visitor Levy (Amendment) (Scotland) Act 2026 (asp 18), s. 16(2)(i), sch. para. 21(a) (with ss. 7, 8)

F2S. 14(1)(da) inserted (22.7.2026) by Visitor Levy (Amendment) (Scotland) Act 2026 (asp 18), s. 16(3), sch. para. 6(a)(i); S.S.I. 2026/198, reg. 2

F3S. 14(1)(e) substituted (22.7.2026) by Visitor Levy (Amendment) (Scotland) Act 2026 (asp 18), s. 16(3), sch. para. 6(a)(ii); S.S.I. 2026/198, reg. 2

F4S. 14(1)(fa) inserted (21.7.2026) by Visitor Levy (Amendment) (Scotland) Act 2026 (asp 18), s. 16(2)(h), sch. para. 8 (with ss. 7, 8)

F5Words in s. 14(1)(i) substituted (1.4.2026) by The Visitor Levy (Scotland) Act 2024 Amendment Regulations 2026 (S.S.I. 2026/116), regs. 1(2), 3(2)(a)(i) (with reg. 4)

F6Words in s. 14(1)(i) repealed (1.4.2026) by The Visitor Levy (Scotland) Act 2024 Amendment Regulations 2026 (S.S.I. 2026/116), regs. 1(2), 3(2)(a)(ii) (with reg. 4)

F7Words in s. 14(1)(i)(ii) repealed (1.4.2026) by The Visitor Levy (Scotland) Act 2024 Amendment Regulations 2026 (S.S.I. 2026/116), regs. 1(2), 3(2)(b) (with reg. 4)

F8S. 14(1)(iv) and word repealed (1.4.2026) by The Visitor Levy (Scotland) Act 2024 Amendment Regulations 2026 (S.S.I. 2026/116), regs. 1(2), 3(2)(c) (with reg. 4)

F9S. 14(1)(i), (vi)-(xiii) inserted (1.4.2026) by The Visitor Levy (Scotland) Act 2024 Amendment Regulations 2026 (S.S.I. 2026/116), regs. 1(2), 3(2)(d) (with reg. 4)

F10S. 14(1)(ia)-(ic) inserted (1.4.2026) by The Visitor Levy (Scotland) Act 2024 Amendment Regulations 2026 (S.S.I. 2026/116), regs. 1(2), 3(3) (with reg. 4)

F11Words in s. 14(1)(j) substituted (1.4.2026) by The Visitor Levy (Scotland) Act 2024 Amendment Regulations 2026 (S.S.I. 2026/116), regs. 1(2), 3(4)(a) (with reg. 4)