Overview

This bill mandates the Secretary of State to conduct research into replacing England's Council Tax and Non-domestic rates with an annual land value tax (LVT). The research will assess the feasibility, advantages, and disadvantages of such a system, including transitional arrangements, and report its findings to Parliament within 12 months.

Description

The bill requires the Secretary of State to commission research into the viability of replacing Council Tax and Non-domestic rates with a land value tax (LVT) in England. This research must consider:

• Efficient administration and implementation of an LVT system.
• Data utilization from existing government sources like the Land Registry and Ordnance Survey to inform valuation.
• Transitional arrangements including mechanisms for valuing land separately from buildings, changes to land registration methods, and managing the shift from existing tax systems.
• Dispute resolution and appeals processes.
• Impact assessment of LVT on property markets, economic productivity, and the wider economy.
• International comparisons of LVT systems.

The Secretary of State must report to Parliament within 12 months of completing the research, including an assessment of the current tax system compared to a proposed LVT system that would generate equivalent revenue.

Government Spending

The bill will result in government spending on the research program itself. The exact amount is not specified in the bill, but it will be funded from money provided by Parliament. Any additional costs associated with implementing a new tax system (should the research recommend it) are not included in this bill's financial provisions.

Groups Affected

• Homeowners: Potentially affected by changes in property tax, depending on the research outcomes and subsequent legislative changes.
• Businesses: Potentially affected by changes in Non-domestic rates, if the research recommends replacing them with LVT.
• Local authorities: Potentially affected by changes to their funding mechanisms and taxation responsibilities.
• Government departments: Involved in the research and data collection process.
• Landowners: Directly affected by the introduction of a LVT; the level of tax could change depending on land value.

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