It’s understood that letting agents who handle Airbnb or other short let arrangement for landlords will be expected to collect the new Visitor Levy.

The Visitor Levy Bill has now been introduced in the House of Commons, and if it becomes law local Mayors or in some cases councils will be able to decide whether to impose it, and if so at what level.

Ten mayors have already committed that any levy introduced in their areas would be no higher than 5%.

The levy will only apply to the first 28 consecutive days of a stay, as longer stays count as long-term accommodation.

Occasional landlords, such as people who only rent out a spare room from time to time, will only pay the levy if they earn above a set amount. 

Local leaders and Mayors will also be able to adjust this threshold.

There will be exemptions for student accommodation, care homes, children’s homes, school boarding houses, temporary accommodation, shelters and refuges.

However, the vast majority of short lets will be subject to the tax, if the law comes into force: landlords handling the short let management and payments must collect the tax, and if they use agents to act on their behalf, the responsibility falls on the agents.

Details are yet to be released by the government department leading on this new tax, the Ministry of Housing, Communities and Local Government.

Housing Secretary Angela Rayner says: “Millions of people visit our wonderful towns and cities each year, and it’s right that our communities should be able to feel the benefit of that footfall.

“Every pound raised through these levies will stay in the local area. Whether that’s better transport, thriving high streets, or more attractions that keep visitors coming back.

“This is about giving mayors and local leaders the choice to invest back into what matters most to local people, while protecting lower-cost stays and making sure businesses have their say.”