The Tax Collection and Management (Visitor Levy Costs) (Wales) Regulations 2026

Made: 4 February 2026

Coming into force: 13 February 2026

The Welsh Ministers, in exercise of the powers conferred on them by section 24A(5)(a) and (b) of the Tax Collection and Management (Wales) Act 2016[^f00001], make the following Regulations.

In accordance with the Senedd approval procedure applied by section 189(2) of that Act, a draft of this Welsh statutory instrument was laid before, and approved by resolution of, Senedd Cymru[^f00002].

Title and coming into force

1

• (1) The title of these Regulations is the Tax Collection and Management (Visitor Levy Costs) (Wales) Regulations 2026.

• (2) These Regulations come into force on 13 February 2026.

Interpretation

2

In these Regulations—

• “the 2016 Act” (“Deddf 2016”) means the Tax Collection and Management (Wales) Act 2016;

• “participating principal council” (“prif gyngor sy’n cymryd rhan”) means a council for a county or a county borough in Wales that has introduced a visitor levy under section 48 of the Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025[^f00003];

• “total visitor levy operating costs” (“cyfanswm costau gweithredu ardoll ymwelwyr”) means the sum of the visitor levy operating costs in respect of all participating principal councils;

• “visitor levy operating costs” (“costau gweithredu ardoll ymwelwyr”) means the amount of costs and disbursements that WRA considers appropriate in respect of the costs it has incurred, and costs it may incur and disbursements that may become payable after it has paid the proceeds of the visitor levy to a participating principal council, in connection with the exercise of its functions during that financial year in relation to the visitor levy for a participating principal council’s area;

• “WRA” (“ACC”) means the Welsh Revenue Authority.

Deductions for costs and disbursements – 10% limit

3

In respect of each participating principal council, for the purpose of section 24A of the 2016 Act WRA must not deduct more than 10% of the proceeds of the visitor levy collected in each financial year in respect of its costs and disbursements.

Deductions for costs and disbursements – reduced limit

4

If the deductions made under regulation 3 would result in a situation where the total sum of all the deductions made by WRA for each participating principal council exceed the amount of the total visitor levy operating costs, then the deduction WRA makes must instead be reduced to a percentage amount from the proceeds of the visitor levy that is—

• (a) the same percentage deduction for all participating principal councils, and

• (b) when the deduction for all participating principal councils is aggregated, a sum that is the same amount as the total visitor levy operating costs.

Signed

Mark Drakeford — Cabinet Secretary for Finance and Welsh Language, one of the Welsh Ministers — 4 February 2026

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

Section 24A of the Tax Collection and Management (Wales) Act 2016 requires the Welsh Revenue Authority (“WRA”) to pay the proceeds of the visitor levy to the relevant principal council but only after WRA has deducted its costs and disbursements. Subsection (5) provides the Welsh Ministers with a regulation making power to make further provision about the deduction of amounts in respect of those costs and disbursements.

Regulation 2 defines certain terms used in these Regulations.

Regulation 3 provides that the deduction WRA makes in respect of its costs and disbursements must be limited to 10% of the proceeds of the visitor levy.

Regulation 4 provides a mechanism whereby the percentage amount that WRA must deduct is reduced if a 10% deduction under regulation 3 would result in WRA deducting sums in respect of costs and disbursements that exceed the total visitor levy operating costs.

The Welsh Ministers’ code of practice on the carrying out of regulatory impact assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the Welsh Government, Cathays Park, Cardiff, CF10 3NQ and is published on www.gov.wales.

Footnotes

[^f00001]: 2016 anaw 6. Section 24A was inserted by the Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), Schedule 2, Part 2, paragraph 25.

[^f00002]: The reference in section 189(2) of the Tax Collection and Management (Wales) Act 2016 to the National Assembly for Wales now has effect as a reference to Senedd Cymru by virtue of section 150A(2) of the Government of Wales Act 2006 (c. 32). Section 189(2) of the Tax Collection and Management (Wales) Act 2016 was amended by the Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025, Schedule 2, Part 2, paragraph 51.

[^f00003]: 2025 asc 5.