34.This section makes transitional provision in relation to modifications of an existing VL scheme to take account of changes made to section 14(1) of the 2024 Act (required content of a scheme) by paragraphs 8 and 21 of the schedule of the 2026 Act.
35.Paragraph 8 of the schedule inserts new paragraph (fa) into section 14(1). The inserted new paragraph requires a VL scheme to specify whether liable persons are permitted to deduct and retain an amount from the levy payable in respect of a chargeable transaction and, if so, the maximum amount of such a deduction.
36.Paragraph 21 of the schedule changes section 14(1)(d) so that a VL scheme must specify the period when the taking of entry to overnight accommodation is to give rise to the levy (as opposed to the period when the purchase of the right to reside there is to give rise to the levy).
37.It also changes section 14(1)(k) so that any such scheme must specify arrangements for the reimbursement of the levy (or a sum equivalent to it) to a person who has entered into a chargeable transaction or a subsequent transaction. This change ensures that the scheme must specify any such arrangements in relation to any person who has entered into such a transaction, and not just a visitor. This would include a person, other than a visitor, who purchases a right to reside in or at overnight accommodation from the accommodation provider or someone else with the intention of selling the right to another person (whether or not to a visitor who intends to take entry to it).
38.If a local authority proposes in the future to modify an existing VL scheme to take account of any of these changes to section 14(1) of the 2024 Act, section 7 of the 2026 Act ensures that the local authority will not need to consult on this modification in accordance with section 13(1) to (3) of the 2024 Act, and that the modification can come into force on a date specified by the authority (rather than having to wait until after the authority has publicised a report under that section stating that it intends to proceed with the proposed modification).
The Act Transitional provisions: chargeable transactions and returns Section 7 - Modification of existing visitor levy scheme