ScheduleConsequential and minor modifications of the 2024 Act

(introduced by section 15)

Part 1Changes relating to the basis on which levy is to be charged

1

The 2024 Act is modified as follows.

2

(1)

In section 5 (calculation of levy), before subsection (1) insert—

“A1

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.”.

(2)

The title of section 5 becomes “Calculation of levy based on a percentage rate”.

3

(1)

In section 6 (rate for levy)—

(a)

before subsection (1) insert—

“A1

This section applies where a local authority is seeking to—

(a)

introduce 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)

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

(b)

in subsection (1), for “A local authority seeking to introduce a VL scheme” substitute “The local authority”.

(2)

The title of section 6 becomes “Setting percentage rate for levy”.

4

In section 10 (billing of overnight accommodation)—

(a)

in subsection (2), in the opening words, for “Regulations” substitute “If the levy to be charged in respect of chargeable transactions is based on a percentage rate (or percentage rates), regulations”,

(b)

after subsection (2) insert—

“(2A)

If the levy to be charged in respect of chargeable transactions is a fixed amount (or fixed amounts) set under section 6A, regulations under subsection (1) may, in particular, require persons to—

(a)

issue an invoice to a visitor or another person entering into a chargeable transaction or a subsequent transaction, in respect of overnight accommodation, which specifies the amount of the levy chargeable for each room or area for each night,

(b)

publish the amount (or amounts) of the levy chargeable for each room or area for each night that any number of persons have a right to reside in or at the overnight accommodation in pursuance of a chargeable transaction.”.

5

In section 12 (scheme to impose levy), after subsection (2) insert—

“(2A)

But a VL scheme, or two or more VL schemes taken together, may impose only one levy in respect of a purchase of the right to reside in or at a particular room or area comprising overnight accommodation on a particular night.”.

6

In section 14 (required content of a scheme)—

(a)

in subsection (1)—

(i)

after paragraph (d) insert—

“(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,”,

(ii)

for paragraph (e) substitute—

“(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,”,

(b)

in subsection (4)—

(i)

in the opening words, after “which” insert “does any of the following”,

(ii)

for paragraph (b), and the word “or” immediately following that paragraph, substitute—

“(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),”.

Part 2Changes relating to permitted deductions by liable persons from levy payable

7

The 2024 Act is modified as follows.

8

In section 14(1) (required content of a scheme), after paragraph (f) insert—

“(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,”.

9

In section 26(2) (duty to make returns), for paragraph (a) substitute—

“(a)

include—

(i)

an assessment of the amount of the levy payable in respect of the relevant period, and

(ii)

if liable persons are permitted under the VL scheme to which the return relates to deduct and retain an amount from the levy payable in respect of a chargeable transaction—

(A)

a statement of any amount (not exceeding the permitted deduction) that is to be deducted by the liable person from the amount of the levy payable in respect of the relevant period, and

(B)

a statement of the net amount of the levy payable in respect of the relevant period, being the amount referred to in sub-paragraph (i) less the amount to be deducted referred to in sub-sub-paragraph (A),”.

10

In section 29 (payment of levy)—

(a)

in subsection (1), after “authority” insert “(unless subsection (1B) applies)”,

(b)

after subsection (1), insert—

“(1A)

Subsection (1B) applies in relation to a chargeable transaction if—

(a)

a liable person’s return made under section 26 includes a statement about a deduction in accordance with section 26(2)(a)(ii) that relates to the chargeable transaction, and

(b)

the deduction is not disallowed under section 29A(2).

(1B)

The levy payable in respect of the chargeable transaction less the amount of the deduction relating to the chargeable transaction must be paid to the relevant local authority.”,

(c)

for subsection (2) substitute—

“(2)

Where a return is to be made under section 26, the following amount must be paid at the same time as the return is made—

(a)

if the return includes a statement in accordance with section 26(2)(a)(ii)of an amount that is to be deducted from the total amount of the levy payable in respect of the relevant period, the total amount of the levy payable in respect of the relevant period less the amount of the deduction,

(b)

otherwise, the total amount of the levy payable in respect of the relevant period.”.

11

After section 29 insert—

“29ADisallowance of deduction by liable persons from levy payable

(1)

This section applies if—

(a)

a liable person’s return made under section 26 includes a statement of an amount that is to be deducted from the total amount of the levy payable in respect of the relevant period in accordance with section 26(2)(a)(ii),

(b)

the relevant local authority has imposed a penalty under Chapter 3 of Part 5 on the liable person, and

(c)

the relevant local authority decides that the penalty relates to the relevant period.

(2)

If this section applies—

(a)

the liable person’s deduction is disallowed, and

(b)

the total amount of the levy payable in respect of the relevant period must be paid to the relevant local authority in accordance with a notice under subsection (3).

(3)

The relevant local authority must notify the liable person—

(a)

of its decision under subsection (1)(c), and

(b)

that the total amount of the levy payable in respect of the relevant period (including the deducted amount) must be paid to it by no later than the end of the period specified in the notice.”.

12

In section 52(1) (penalty for failure to pay levy), for paragraph (a) substitute—

“(a)

P fails to pay the amount of the levy payable in accordance with—

(i)

section 29(2)(a),

(ii)

section 29(2)(b), or (as the case may be)

(iii)

section 29A(2),”.

13

In section 53(1) (reasonable excuse for failure to pay levy), after “29” insert “or 29A(2)”.

14

In section 66 (interest on unpaid levy), after subsection (1) insert—

“(1A)

If section 29A applies in relation to a return made under section 26 by a liable person, the total amount of the levy payable in respect of the relevant period to which the return relates is to be treated for the purposes of subsection (1) as if it had been payable in accordance with section 29(2)(b).”.

15

In section 70 (summary warrant), in subsection (1)(a), after “section 29(2)” insert “or 29A(2)”.

16

In section 76(1) (interpretation of Act), after the definition of “overnight accommodation” insert—

““permitted deduction”, in relation to a VL scheme, is to be construed in accordance with section 12A(2),”.

Part 3Other changes relating to chargeable transactions and returns etc.

17

The 2024 Act is modified as follows.

18

In section 7 (maximum number of nights of overnight accommodation), in subsection (1), after “introduce” insert “or modify”.

19

In section 10 (billing of overnight accommodation)—

(a)

in subsection (1), after “chargeable transactions” insert “and subsequent transactions”,

(b)

in subsection (2)(a)—

(i)

in the opening words, after “visitor” insert “or another person”,

(ii)

in the opening words, after “chargeable transaction” insert “, or a subsequent transaction, in respect of overnight accommodation”,

(iii)

in sub-paragraph (ii), for the word “transaction” substitute “accommodation”,

(iv)

in sub-paragraph (iii), the words “and any deduction made under section 5(1)(b)” are repealed,

(v)

in sub-paragraph (iv), for “transaction” substitute “accommodation”,

(c)

in subsection (2)(b)—

(i)

in the opening words, after “person” insert “or another person”,

(ii)

in sub-paragraph (i), the words “and any deduction made under section 5(1)(b)” are repealed.

20

In section 11 (exemptions and rebates), in subsection (1)(b), for “enter into” substitute “take entry to overnight accommodation in pursuance of”.

21

In section 14(1) (required content of a scheme)—

(a)

for paragraph (d) substitute—

“(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),”,

(b)

in paragraph (k), for the words “visitor who has (or a category of visitors who have) entered into a chargeable transaction” substitute “person who has (or a category of persons who have) entered into a chargeable transaction or a subsequent transaction”.

22

In section 28(4) (duty to keep and preserve records)—

(a)

for paragraph (a) substitute—

“(a)

details of any overnight stays during the period to which the return relates in respect of which levies become payable by the liable person,”,

(b)

after paragraph (a) insert—

“(ab)

details of the chargeable transactions in relation to which those levies are payable,”.

23

In section 45(3) (power to allow a local authority to make or substitute an assessment), in the opening words, after “and” insert “in”.

24

In section 47(1) (penalty for failure to make returns), after “section 26” insert “(as read with section 25(1))”.

25

In section 76(1) (interpretation of Act)—

(a)

in the definition of “chargeable transaction”, after “section 3(2)” insert “(see also section 3(2A) and (2B))”,

(b)

after the definition of “relevant local authority” insert—

““subsequent transaction” is to be construed in accordance with section 3(2A)(b),”.