The government consulted on the introduction of an overnight visitor levy between November 2025 and February 2026. It has now confirmed that it will proceed with the introduction of the levy and has set out the design of the levy in a consultation outcome document.

How the levy will work 

Key points are as follows: 

• Implementation: All mayoral and foundation strategic authorities (FSAs) in England will be able to introduce an overnight visitor levy, subject to consulting locally and giving businesses advance notice of the levy’s introduction and any subsequent changes.
• Design: the visitor levies will operate within a standardised framework for the rate type, application of the levy, and exemptions.
• Scope: the levy will apply to all short-term visitor accommodation, subject to national and discretionary local exemptions. It is expected that exemptions will be made at a national level for registered gypsy and traveller sites, temporary accommodation and charitable accommodation for shelter or refuge.
• Rate: the levy will be set as a percentage of the accommodation cost, with strategic authorities setting the levy rate. Non-accommodation costs, such as meals, will be excluded.
• Collection: accommodation providers will be the persons liable for the levy, calculating and declaring their levy liabilities through a self-assessment process. Providers may choose to pass some or all of the cost on to visitors through accommodation charges.
• Administration: strategic authorities will be responsible for the administration and collection of the levy. The framework for compliance, enforcement and appeals will be set out through legislation and guidance.
• Use of revenues: strategic authorities will decide how levy revenues are spent.
• Commencement: the government expects to legislate for the levy during the current Parliamentary session, with local leaders able to set out plans for how revenues will be invested by March 2028.   

ICAEW’s response 

ICAEW has broadly welcomed the government’s response to the consultation, having called in ICAEW Representation 18/26 for a national model scheme that would ensure consistency while giving mayors flexibility to address local circumstances and needs.  

Next steps 

The government says that the levy “will be one of a growing set of fiscal powers that local leaders can use to support growth in their region”. It also says that further proposals will be set out in a Fiscal Devolution Roadmap to be published at Budget 2026. 

Scotland and Wales 

A visitor levy came into effect in Edinburgh on 24 July 2026, with more regions in Scotland expected to follow in the coming months.  

Cardiff Council is expected to be the first council in Wales to introduce a visitor levy, from April 2027.