Manchester's visitor charges explained: the £1 City Visitor Charge and the coming levy

Many Manchester hotel guests already pay a £1 City Visitor Charge, but it almost certainly does not apply to your short let. A bigger change is coming, though. The government has announced that mayors in England will get powers to charge an overnight visitor levy, and short lets are likely to be in scope.

Here is what applies today, and what to prepare for.

What is Manchester's City Visitor Charge?

Since April 2023, the Manchester Accommodation Business Improvement District has funded marketing, events and street cleaning through the City Visitor Charge. It is a supplementary £1, plus VAT where applicable, per room or unit per night, added to guests' accommodation bills.

The charge comes from a business improvement district, a scheme where businesses in an area vote to pay a levy for shared improvements. It is not a council tax on tourists.

Does the City Visitor Charge apply to your short let?

Almost certainly not. The BID says the charge is collected by paid accommodation within its zone that has a rateable value of £75,000 or more. As of November 2025, 79 establishments met those criteria, mostly hotels and serviced apartment operators.

A typical Airbnb flat is nowhere near that rateable value, and many short lets are on council tax rather than business rates at all. So you do not need to add the £1 charge to your bookings.

What overnight visitor levy has been announced?

In September 2026, the government announced that mayors and local leaders will be handed the power to introduce an Overnight Visitor Levy. Key points from the announcement:

• The levy will be charged as a percentage of the cost of accommodation, not as a flat fee.
• It will be optional. Each mayor or local leader decides whether to use it.
• A bill will be introduced to bring it in.
• The government expects mayors and leaders to set out spending plans by early 2028.

The earlier government consultation ran from 26 November 2025 to 18 February 2026. The House of Commons Library noted that, as of December 2025, English local authorities did not have the power to introduce a visitor levy, and that primary legislation would be needed.

Would short lets be included?

The final rules are not yet law. The consultation discussed a wide range of paid overnight accommodation, and in Scotland, Edinburgh's levy applies to short lets alongside hotels. It would be sensible to plan on the basis that a Greater Manchester levy, if introduced, would cover short lets too.

Edinburgh gives a useful preview of how a percentage levy works in practice. Read the Edinburgh visitor levy explained.

When could the levy start?

Not yet. A bill still needs to pass through Parliament, and then Greater Manchester would need to decide whether to use the power, consult residents and businesses, and design its own scheme. With spending plans expected by early 2028, any Manchester levy is unlikely to start before then. Watch for news from the Greater Manchester Combined Authority.

How should you prepare now?

• Keep clean booking records. Record the accommodation price separately from cleaning fees and extras, because a percentage levy is likely to be charged on accommodation only.
• Know your nights. Record check-in and check-out dates, booking dates and payment dates.
• Use tools that can adapt. A channel manager or management company that can add a levy line to bookings will save a lot of work.
• Tell repeat guests early. Regular business guests appreciate knowing about any new charge before it appears on a bill.
• Price with headroom. A few percent added to guest bills will change how your price compares with hotels, which may also carry the levy.

What might the levy mean for demand?

A percentage levy would apply to hotels and short lets alike, so it should not change the balance between them much. The bigger effect may be on price-sensitive guests, who might shorten stays. Longer stays and business guests are usually less sensitive. See business travel and contractor stays in Manchester.

What other costs should you plan for?

Council tax, business rates and income tax are bigger costs than any visitor charge for most owners. See council tax, business rates and costs for Manchester short lets.

What does this mean for you?

• You almost certainly do not collect Manchester's £1 City Visitor Charge.
• Mayors are getting powers to charge a percentage levy on overnight stays. It is not in force yet.
• Keep booking records that separate accommodation from extras, so you are ready if a levy arrives.

Let us handle the charges

Our Manchester short-let management team will add any new levy to your pricing and admin, so you do not have to. Get your free valuation to see what your home could earn.

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This is general information, not legal or tax advice. It is our own interpretation of the rules and figures as they stand on the date shown above, and they can change. Speak to a qualified solicitor or accountant before you act on anything here.