Scottish Parliament passes Visitor Levy Bill into legislation
By Justine Riccomini, Head of Tax (Employment and Devolved Taxes)
4 June 2024
The Scottish Parliament passed the Scottish Visitor Levy legislation on 29 May 2024.
The visitor levy is a local tax, which means that the Scottish Parliament has passed powers to local councils across Scotland who can decide whether to impose a levy on visitors to their area.
So-called "tourist taxes" are charged in hotels and other premises such as B&Bs, campsites, etc. throughout Europe and in other countries across the world. The taxes raised by any local councils in Scotland will be ring-fenced (hypothecated) for improving tourism services and facilities within the council’s boundaries.
Councillors in Edinburgh voted in favour of the tourist tax in 2019 when it was first debated. It’s expected that Edinburgh City Council will raise around £20-30m each year from the scheme once it’s up and running.
Scottish councils can’t introduce the visitor levy until spring 2026, and the Scottish government must review the scheme no more than three years after the first local council starts the scheme.
Visitors who receive disability benefits will be exempt from the charge and councils have the discretion to exempt small businesses who fall under the VAT registration threshold.
If you’ve spotted a tax anomaly that is producing an inequitable result or getting in the way of doing business, why not share it with the ICAS tax team?
