London tourist tax on accommodation will be capped at 5pc, mayor says
London Mayor Sadiq Khan has announced that a new tourist tax on overnight accommodation will be capped at 5 percent. The levy aims to fund city infrastructure and maintain London's appeal as a global travel destination.
Why it matters
This policy change impacts the travel industry and sets a precedent for how major global cities manage tourism-related revenue and infrastructure costs.
The UK welcomes hundreds of thousands of tourists from Australia each year. ( Reuters: Isabel Infantes )
Link copied Share Share article A new tax on overnight stays in London will be capped at 5 per cent of the cost of accommodation, the BBC has reported.
Under the legislation, local authorities will be able to charge a flat fee or a percentage of the cost of an overnight stay for domestic and international guests in London accommodations.
London Mayor Sir Sadiq Khan told BBC London that he welcomed plans by the government and promised it would not be above 5 per cent per night.
The exact amount has not yet been determined.
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