This UK city is the first to introduce tourist tax — will Brits have to pay?

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This UK city is the first to introduce tourist tax — will Brits have to pay?
Author: Alice Giddings
Published: Jan, 10 2025 12:06

Edinburgh has become the first UK city to introduce a comprehensive tourist tax. Around five million tourists visit the famous Scottish capital – known for it’s rich history, Fringe festival and inspiring Diagon Alley in Harry Potter – but it’ll soon cost a little more to do so.

 [Tourists wait to enter a Harry Potter merchandise shop on Victoria Street, thought to be the inspiration for Diagon Alley in the Harry Potter books, on June 5, 2024 in Edinburgh. Sam Thorne guides Harry Potter fans through the gothic streets of Edinburgh, where controversial author JK Rowling dreamt up the boy wizard more than three decades ago. The Scottish capital attracts lovers of the bespectacled schoolboy from across the world, boosting the UK economy and helping generate billions of pounds in global sales of Potter-related offerings. (Photo by Andy Buchanan / AFP) (Photo by ANDY BUCHANAN/AFP via Getty Images)]
Image Credit: Metro [Tourists wait to enter a Harry Potter merchandise shop on Victoria Street, thought to be the inspiration for Diagon Alley in the Harry Potter books, on June 5, 2024 in Edinburgh. Sam Thorne guides Harry Potter fans through the gothic streets of Edinburgh, where controversial author JK Rowling dreamt up the boy wizard more than three decades ago. The Scottish capital attracts lovers of the bespectacled schoolboy from across the world, boosting the UK economy and helping generate billions of pounds in global sales of Potter-related offerings. (Photo by Andy Buchanan / AFP) (Photo by ANDY BUCHANAN/AFP via Getty Images)]

This new charge follows in the footsteps of cities like Amsterdam, Berlin and Venice who tax tourists to raise funds for the area. Despite it being a UK destination, Brits won’t get a special pass when visiting the city and will be subject to the same fees as everyone else.

Here’s everything you need to know…. The tax, known as the Transient Visitor Levy, will charge guests at hotels, B&Bs, hostels and holiday rentals like Airbnbs, 5% of the room cost, per night. The fee is capped at seven consecutive days, meaning you will only be charged for one week, even if you’re going to be staying for longer in the same accommodation.

For example, if you stayed in an £80 per night Airbnb, you would pay £4 per night in tourist tax. The more expensive the accommodation, the more expensive the tax. It’s being implemented as a VAT surcharge, meaning you won’t have to make a separate payment, it will be added on to your accommodation costs.

This charge is expected to raise up to £50 million per year by 2029 and the council claims it will be invested in infrastructure, affordable housing, culture, heritage and events, with 35% of funds put aside for the arts sector. The tourist tax will come into force on July 24, 2026 but there will be a transitional period.

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