13.This section inserts new sections 12A and 12B into the 2024 Act.
14.New section 12A provides that, in introducing or modifying a VL scheme, a local authority may permit persons who are required to pay the levy in respect of a chargeable transaction to deduct and retain an amount from the levy payable. A person is required to pay the levy if the person: (a) provides overnight accommodation to a visitor in pursuance of the transaction, and (b) is the occupier of the premises in or at which that overnight accommodation is provided (see section 8 of the 2024 Act). The person who is required to pay the levy is referred to as “the liable person”. If a local authority permits liable persons to deduct and retain an amount from the levy payable in respect of a chargeable transaction, the local authority must set the maximum amount of such a deduction in relation to the VL scheme (referred to as “the permitted deduction”). The permitted deduction may be (a) a maximum fixed amount that may be deducted from the levy payable in respect of a chargeable transaction or (b) a maximum percentage of the amount of the levy payable in respect of a chargeable transaction. The permitted deduction may also be different for different purposes. For example, different maximum amounts of deduction may be permitted for different accommodation providers according to the size of the business (or another criterion).
15.New section 12B confers a regulation-making power on the Scottish Ministers to make further provision for or in connection with local authorities permitting liable persons under section 12A to deduct and retain an amount from the levy payable in respect of a chargeable transaction. Regulations under this power may, in particular, make provision about the matters listed in subsection (2) of section 12B. This includes making provision about local authorities disallowing the deduction and retention of an amount from the levy payable in relation to relevant periods.
16.Liable persons are required to make returns to local authorities that include an assessment of the levy payable in respect of each relevant period. These returns must assess the levy payable in respect of each quarter or such other period or periods as may be specified in the VL scheme to which the return relates (see section 26 of the 2024 Act). If a return by a liable person proposes a deduction from the total amount of the levies payable for a relevant period and a local authority determines that a penalty imposed by it on the liable person under Chapter 3 of Part 5 of the 2024 Act relates to that period, the deduction is disallowed (see section 29A of the 2024 Act). In that case, the total amount of the levy payable in respect of the relevant period will need to be paid to the local authority in accordance with that section 29A (see also paragraph 68 of these Notes).
17.If regulations under section 12B amend the text of primary legislation, a draft of the regulations must be laid before and approved by the Scottish Parliament before they can be made. In other cases, the regulations are subject to the negative procedure which means that the Parliament could annul them (see also section 28 of the Interpretation and Legislative Reform (Scotland) Act 2010 for the meaning of “the negative procedure”).
The Act Permitted deduction by liable persons from levy payable Section 2 - Permitted deduction by liable persons from levy payable