Tax point in addition covers large hotel (8)
'tax point' is the definition.
'in addition covers large hotel' is the wordplay.
'in addition' becomes 'toboot' ('to boot' can be a synonym of 'in addition'**).
'covers' is an insertion indicator.
'large' becomes 'l'.
'hotel' becomes 'h' (phonetic alphabet: alpha, bravo, charlie etc.).
'toboot' going around 'l' is 'tolboot'.
(Another definition for tolbooth that I've seen is "Scottish prison".)