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File image: Yellow hotel building with large HOTEL sign against blue sky
✓ ABC NewsMoney & Work

Mayor Khan backs London's new overnight visitor tax

London will introduce a tax of up to 5 per cent on overnight accommodation costs for all visitors.

London will introduce a new tax on overnight stays, capped at 5 per cent of accommodation costs. The tax applies to hotels, guesthouses, bed and breakfasts, hostels, campsites and self-catering properties.

The exact rate has not yet been set. Projections suggest it could raise up to £240 million annually if set at 3 per cent.

Mayor Sadiq Khan says the tax brings London in line with Paris, Amsterdam, Barcelona and other major cities. Revenue will fund transport, regeneration and cultural assets.

For Australians planning London trips, this represents a new cost to factor into holiday budgets.

5 per cent
Tax cap
£240 million annually
Potential revenue at 3%
Sir Sadiq Khan
Mayor

Why it mattersLondon is hugely popular with Australian travellers, so this new cost will directly affect holiday planning and spending.

AustraliaAustralian tourists heading to London should budget for an extra 5% accommodation fee, though the exact rate and implementation date have not yet been finalised.

✓ Claims checked against the source and corrected before publish. checked 12 d ago

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