Cardiff's Visitor Levy: What Short-Let Owners Need to Prepare Before April 2027

The Cardiff visitor levy is confirmed. Cardiff Council has resolved to introduce it across its local authority area from 1 April 2027. It covers visitor accommodation, including self-catering short lets.

The useful question for an owner is how to make the levy work cleanly within bookings, guest communication and reporting. Waiting until next spring risks leaving important details unresolved.

Cardiff visitor levy: which dates matter?

There are two dates to keep separate. The levy starts on 1 April 2027, but the Welsh Revenue Authority's booking guidance says new bookings made from 28 September 2026 for stays beginning on or after that start date fall within the rules.

Earlier reservations are not automatically charged. Changes made from 28 September can bring added nights or guests into scope. If dates move, qualifying nights that were not in the original booking can also become liable.

Keep the original booking date and an audit trail of changes. That makes it possible to explain why two apparently similar April stays may have different levy treatment.

How much will guests' stays attract?

The official rates guidance sets £1.30 per person per night for self-catering accommodation and most other visitor accommodation. For an ordinary Cardiff holiday apartment, this includes guests of every age, including babies.

The lower rate is 75p per adult per night for tents on camping pitches and shared rooms such as hostel dormitories. Under-18s are excluded at that lower rate. It is not the rate for a private Airbnb apartment.

For example, four guests staying three nights in a qualifying self-catering let generate £15.60 of levy: four × three × £1.30, before any applicable VAT on a charge passed to guests.

A single booking for 32 nights or more is excluded. Cancelled stays, no-shows and temporary housing provided by a local council are also excluded. The guidance includes a specific exception for a provider's own employees, contractors or apprentices staying as part of their job. This is not a general exemption for business travellers.

Decide how to cover the cost

The WRA's Cardiff checklist gives owners three options: absorb the cost, raise the accommodation price or charge a levy fee. Check what each booking platform can support before choosing your approach.

Whichever method you use, make the total cost clear before booking. Agree who updates listings, confirms guest numbers and handles changes. A consistent explanation across direct bookings and platforms will reduce avoidable questions.

Using a manager does not remove the provider's responsibility. The WRA's duties guidance allows trusted help with filing and payment, while keeping responsibility with the accommodation provider.

Keep VAT separate from the levy return

According to the current VAT guidance, VAT applies to the total amount guests pay a VAT-registered provider, including levy costs passed on to them. At the standard 20% rate, a £1.30 levy fee becomes £1.56 for the guest.

The levy goes to the WRA; VAT goes to HMRC. VAT must not be included in the levy return. Owners who are not VAT registered should also check their position: increased prices or levy fees count towards taxable turnover.

Longer stays can have separate VAT relief rules. Ask your accountant how the guidance applies to your operation before changing invoices or pricing.

Build records that support a return

The WRA's record-keeping guidance requires records for all stays, including dates, guest numbers and nights. Keep details of excluded stays too, and separate totals for each accommodation address and each rate where relevant.

Calculations use the guest count on the booking; you do not need to track daily changes during the stay. Keep records for six years after submitting a return, or six years after amending it.

Agree a monthly reconciliation between reservations, cancellations, levy amounts and owner statements. A booking export alone may not preserve the original dates or explain later adjustments.

What to prepare before April 2027

• Review qualifying bookings and changes made from 28 September 2026
• Confirm the applicable rate and how guest numbers are recorded
• Agree whether to absorb the cost or pass it on, with clear guest pricing
• Check VAT treatment with your accountant and keep VAT separate
• Assign responsibility for reconciliation, filing and payment
• Complete the required visitor accommodation registration by 31 March 2027

Visitor accommodation registration is a separate requirement. The provider is responsible, although a management company can register on their behalf.

Plan cash flow for returns too. Under the current filing guidance, providers owing more than £1,000 a year must file and pay every three months. Those owing £1,000 or less can choose annual or quarterly filing. Use the WRA's published deadlines when setting reminders.

Official guidance checked on 5 October 2026. This article provides general owner information, not individual tax or legal advice. Check the linked WRA guidance for your circumstances and any updates before filing.