The Visitor Levy (Scotland) Act 2024 gives local authorities the power to introduce this charge on a wide range of visitor accommodation. Funds must be reinvested locally in services used by tourists, such as public transport, green spaces, and toilets.
Implications for agents and landlords
The levy applies to hotels, guest houses, bed and breakfasts, self-catering properties, hostels, campsites, and stationary vehicles or boats used for overnight stays. The charge is based only on the cost of the accommodation, excluding extras such as meals, parking, entertainment, or laundry. Councils must apply the same percentage rate to all types of accommodation within a scheme area, although rates may vary between local authorities. A national cap may also be introduced by Scottish Ministers.
Although the levy is due when a guest occupies the property, it applies to any stay after the scheme begins if the booking was made on or after 1 October 2025. Bookings paid in full before a council formally adopts a scheme will be exempt.
Landlords are legally responsible for collecting and paying the levy, but they may delegate this to a letting agent or platform, subject to the local authority’s agreement. Agents may also be required to show the levy separately in invoices and published prices, depending on future regulations.
Propertymark’s view
We support visitor levies where they are fair, transparent, and properly targeted. In areas with high numbers of short-term lets, these charges can help ease pressure on local services and ensure tourism benefits communities.
Welsh Revenue Authority prepares for bigger role as visitor levy plans progress
A new Corporate Plan for 2025 to 2028 sets out how the Welsh Revenue Authority (WRA) will expand its responsibilities and strengthen service delivery. The plan signals a step change in the WRA’s role, with implications for agents operating across the short-term lettings and tourism sectors in Wales.
We continue to campaign for a level playing field between the private rented sector and short-term lets, particularly in terms of tax and property standards. As outlined in our research on short-term lets, undertaken in 2022, unchecked growth in holiday accommodation can reduce affordability and availability in local housing markets.
Short-Term Lets Licensing requirements in Scotland extended
The Scottish Government has announced more time for hosts of short-term lets to apply for a licence. The deadline has now been postponed for six months from the original deadline of 31 March 2023 to 1 October 2023.
We will work with councils as they consult on schemes and push for consistent guidance to support agents and landlords in complying with new requirements.
Exemptions
The levy will not apply to children under 16, business travellers staying away for work, people in temporary homeless accommodation, or visitors staying in charity-run premises. It also exempts guests receiving disability-related benefits, including Personal Independence Payment, Disability Living Allowance, and Attendance Allowance.
