The UK government has unveiled legislation that would allow local authorities to charge a tourist tax on accommodation in London. The mayor has said the rate will be capped at 5% of the cost of a night's stay or a flat fee — final decisions rest with local councils.
What exactly is changing
The bill, published this week, gives local authorities the power to set a charge on overnight stays for both domestic and international guests. It could be a fixed fee or a percentage of the accommodation cost. The Mayor of London has publicly promised the cap will not exceed 5%.
For now, this is a framework: specific rates, start dates and administration will be decided locally. The source does not provide exact launch dates.
Who is affected
- Tourists visiting London — both foreign and domestic.
- Hotels, apartments and other accommodation providers covered by local decisions.
- Those booking through online platforms: the levy will likely be added to the bill or shown as a separate line.
The payment side: what to consider when booking
If the levy is introduced, the total cost of a stay will rise. For travellers, this means a few practical points:
- Booking and pre-authorization. Hotels often hold more than the room rate to cover extras. If a levy is added, the hold may increase, so your card needs enough available funds.
- Paying with a foreign card. When paying in pounds sterling with a card issued outside the UK, currency conversion may apply. Virtual cards with a foreign-currency balance help keep such charges predictable.
- Refunds. If a trip is cancelled, the levy may be refunded according to the hotel's policy — check this in advance.
- Extra costs. Beyond accommodation, a trip will require an eSIM for connectivity and taxi payments — these are also easier to manage with a card that works in the UK.
What's next
The bill is only the first step. Details will depend on local council decisions: where the levy applies, at what rate and from what date. Travellers planning a trip to London should watch for official announcements.
This material is for information only and is not financial advice.
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