Visitor levy (tourist tax), council tax and canal boats: FOI release

Information requested

1. Does the Scottish Government intend the forthcoming visitor levy (tourist tax) to be applied to canal boats that are hired as overnight accommodation, or are they intended to be exempt? Please would you refer to any written communication clarifying what the intention is.

2. Please provide data showing a) how many resident canal boats are a second home (i.e. the owner lives there at least 25 days and owns another primary residence) and b) whether the Scottish Government intends the powers for councils to levy an increased council tax premium for second homes to apply to resident canal boats meeting the criteria. Please could you refer to any written communication that helps to clarify these points.

Response

1. Section 4 of the Visitor Levy (Scotland) Act 2024 sets out the meaning of overnight accommodation. Overnight accommodation is defined for the purposes of the Visitor Levy as, “a room or area provided to a visitor for residential purposes”. Section 4 (2) lists the types of accommodation that could fall within the scope of a levy, and includes “accommodation in a vehicle, or on board a vessel, which is permanently or predominantly situated in one place”. The power to introduce a Visitor Levy resides with individual local authorities. The interpretation of the legislation, as well as the implementation and administration of the Visitor Levy, is entirely a matter for them.

2. In response to question 2 of your request, while our aim is to provide information whenever possible, in this instance the Scottish Government does not have all of the information you have requested. We do not hold information on the number of residential canal boats which are second homes. This is a formal notice under section 17(1) of FOISA that the Scottish Government does not have some of the information you have requested.

Liability for Council Tax may be based on whether the house boat is a “dwelling” within the meaning of the relevant legislation, the Local Government Finance Act 1992. Interpretation of that legislation, and the assessment of whether the house boat is liable to council tax, is a matter for local authorities. It is for local authorities to determine, too, how they wish to apply the powers in relation to second homes. The administration of Council Tax is a matter for Local Authorities. A second home is classed as any home that is not used as someone’s primary residence but that is occupied for at least 25 days in a year.

As a result of changes to legislation with effect from 1 April 2024, local authorities have power to charge second homes either:

• A discount up to 50%
• The standard rate of Council Tax
• Or a premium up to 100%.

The Scottish Government cannot provide legal advice as to the legal effect or application of Scottish Parliament legislation. If in doubt about the application of effect of legislation, please consult a solicitor or Citizens Advice Bureau.

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