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UK: The government has introduced a bill that would give England’s mayors and other local leaders the power to charge a tourist tax on overnight stays, including short-term rentals and holiday lets.
Under the Visitor Levy (England) Bill, accommodation providers would be responsible for reporting and paying the levy, which would be calculated as a percentage of the accommodation price before VAT. Ten mayors have pledged to keep any levy in their areas at 5% or below.
In the North East, mayor Kim McGuinness says the levy could help fund festivals and attract more visitors. Under the bill, council leaders could object and recommend changes, but McGuinness would have the final say after consultation.
York and North Yorkshire mayor David Skaith also plans to introduce a levy. Tourism businesses in Scarborough and Whitby have warned that higher prices could deter domestic holidaymakers.
The bill also proposes a maximum prison sentence of 14 years for fraudulent evasion of the levy following conviction on indictment.
Highlights
- Would England’s tourist tax apply to holiday lets? Yes. The bill covers paid stays in short-term rentals, holiday lets and hotels in areas that adopt a levy.
- Who would pay the visitor levy? Accommodation providers would report and pay it to the authority. Local leaders would set the percentage rate after consultation.
- Can councils block the North East tourist tax? Under the bill, council leaders could recommend changes, but the mayor would have the final say.
