Overview

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

Description

The bill requires the Secretary of State to commission research on 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 sources like the Land Registry, Valuation Office, and Ordnance Survey to inform the assessment.
• Transitional arrangements, including mechanisms for valuing land separately from buildings, adjustments to land registration methods, local autonomy in setting tax rates, and strategies for replacing existing taxes (Council Tax and Non-domestic Rates).
• Dispute resolution and appeals processes related to land valuations.
• Impact assessment on various aspects such as derelict properties, speculative land purchases, property development, property prices, economic productivity, and the wider economy.
• A review of international experience with LVT systems.

The Secretary of State must report to Parliament within 12 months of research completion, including interim reports detailing progress.

Government Spending

The bill will lead to government expenditure on commissioning and conducting the research. The exact cost is not specified in the bill, but it will be funded from money provided by Parliament.

Groups Affected

• Homeowners: Potentially affected by a shift from Council Tax to LVT, with potential changes to their tax burdens depending on land value.
• Businesses: Could experience changes in taxation through the replacement of Non-domestic rates with LVT, potentially impacting their operating costs.
• Local Authorities: Their funding mechanisms could be altered, requiring adaptation to the new taxation system.
• Government Departments: Involved in the research and subsequent implementation of any changes resulting from the research.
• Landowners: Directly affected by the LVT, which would be levied on the unimproved value of their land.

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