Tourist tax first for Manchester

From 1 April 2023, visitors to city centre Manchester hotels or apartments will pay an extra £1 a night, per room in Tourist tax. It makes Manchester the first UK city to bring in the tax. 

The 'tourist tax' is a levy agreed by members of the Manchester Accommodation Business Improvement District (ABID) aiming to raise £3 million which will go towards new events, promotions and keeping the city clean. 

How it works

The charge will be payable for anyone staying overnight in paid accommodation establishments that fall into the Manchester ABID zone which is primarily within the city's inner ring road.

• The accommodation must have a rateable value over £75,000.
• It means if you stay in an Airbnb and smaller hotels under the £75,000 rates limit in the city, you won’t pay the £1  (ex-VAT) tourist tax.

ABID is led by the Manchester Hoteliers’ Association in collaboration and partnership with Marketing Manchester, CityCo and both Manchester and Salford City Councils. ABID is, "A direct response to significant challenges currently facing the accommodation sector in Manchester, including recovery from the pandemic and the impact that Brexit has had on the hospitality sector."

In response to a consultation on a 'tourist tax', the Welsh government has announced legislation allowing local authorities to introduce a local levy. It will be put to the Senedd within the next two years.

Useful guides on this topic

Accommodation & hotels
Will there be an accommodation Benefit In Kind when a company rents a flat for a director instead of a hotel room? This guide considers tax relief available where accommodation is provided through the business.   

Airbnb: Tax Overview
What expenses can Airbnb owners claim for tax purposes? How is income taxed? Can you claim Rent-a-Room Relief? How does it affect Private Residence Relief? What are the VAT rules? 

External links

Manchester Accommodation Business Improvement District

Update on proposals for a discretionary visitor levy for Wales