Visitor Levy (Amendment) (Scotland) Bill: Business and Regulatory Impact Assessment (BRIA)

Introduction

This Business and Regulatory Impact Assessment (BRIA) assesses the impacts of the Visitor Levy (Amendment) (Scotland) Bill (“the Bill”) on business, investment and the economy in Scotland.

The Bill seeks to make changes to an existing piece of legislation, the Visitor Levy (Scotland) Act 2024 (“the 2024 Act”) to give local authorities flexibility to set up a visitor levy scheme in their areas using a fixed amount (or amounts) model as an alternative to the current percentage-based model provided for in the 2024 Act.

The Bill clarifies how the levy should be calculated for third-party accommodation bookings, where providers often do not know the final sale price of the accommodation to the visitor. Under the 2024 Act, this created uncertainty and risk of inaccurate returns. The amendment specifies that the levy must be calculated on the first sale price of the accommodation. The Bill also amends the 2024 Act so that returns should be based on the date of stay rather than the transaction date. These changes address operational issues raised during early implementation and ensure consistency for local authorities, accommodation providers, and booking platforms, reducing administrative burden and improving compliance.