Part 2Key concepts

Basis and calculation of levy

5F1Calculation of levy based on a percentage rate

F2A1

This section applies where a local authority has—

(a)

introduced a VL scheme under which the levy is to be charged in respect of a chargeable transaction on the basis of a percentage rate, or

(b)

modified a VL scheme to provide for the levy to be charged in respect of a chargeable transaction on the basis of a percentage rate.

(1)

The amount of the levy chargeable in respect of a chargeable transaction is calculated by—

(a)

taking the accommodation portion of the transaction, and

(b)

multiplying that amount by the percentage rate set by a local authority under section 6.

(2)

In subsection (1), the “accommodation portion” means the amount of the chargeable transaction that is attributable to the provision of the overnight accommodation.

(3)

In particular, the accommodation portion does not include any amount reasonably attributable to the provision of—

(a)

meals or drinks,

(b)

parking for a motor vehicle (other than a parking area provided as overnight accommodation in respect of the transaction),

(c)

laundry facilities or services,

(d)

entertainment,

(e)

transportation to or from the accommodation.

(4)

The Scottish Ministers may, by regulations, amend subsection (3) so as to add to, remove, or vary the description of, the facilities or services listed.

(5)

Regulations under subsection (4) are subject to the negative procedure.