27.This section modifies section 26(3)(a) of the 2024 Act (duty to make returns).
28.Section 8 of the 2024 Act provides that the person liable to pay the levy under a VL scheme is the person who (a) provides overnight accommodation to the visitor in pursuance of a chargeable transaction and (b) is the occupier of the premises at which the accommodation is provided.
29.Section 26 of the 2024 Act provides that the liable person must make returns to the local authority which introduced the scheme. Each return must include an assessment of the amount of the levy payable in respect of each quarter or such other period specified by the local authority.
30.More specifically, existing section 26(3)(a) states that, for this assessment, the amount of the levy payable is the total amount of the levies in respect of chargeable transactions entered into by the liable person during the period. The assessment (included in a return for a period) would therefore need to cover all chargeable transactions entered into during the period even if a visitor does not take entry to overnight accommodation during the period in pursuance of the transaction.
31.Section 3 of the 2026 Act modifies section 26(3)(a) so that, for each assessment in respect of a period, the amount of the levy payable is the total amount of the levies that become payable during the period. This change means that a return for a given period would need to assess only the levies due in cases where a visitor takes entry to overnight accommodation during the period in pursuance of a chargeable transaction (rather than also having to anticipate the levies that might arise in cases where a transaction has been entered into but a visitor has not yet taken entry). This change will also ensure that the assessment of the levies that are due for a given period aligns with the amounts to be paid to the local authority for the period under section 29 of the 2024 Act.
The Act Duty to make returns Section 5 - Duty to make returns