Overview

This bill mandates the Secretary of State to conduct research into replacing Council Tax and non-domestic rates in England with an annual tax on the unimproved value of all land. The research will examine the feasibility and implications of such a land value tax (LVT), including transitional arrangements, and report to Parliament within 12 months.

Description

The bill requires the Secretary of State to commission research into a land value tax (LVT) as a replacement for Council Tax and non-domestic rates in England. This research must:

• Assess the practicality of implementing an LVT, including efficient administration and implementation.
• Involve collaboration with relevant bodies like the Land Registry, Valuation Office, and Ordnance Survey, utilizing existing geographical information systems (GIS).
• Consider transitional arrangements for switching from the current system to an LVT.
• Evaluate the impact of LVT on various aspects of the property market, economy, and local government.
• Review international experiences with LVTs.
• Include proposals for pilot programs to test the practical aspects of data acquisition and management for an LVT system.

The final report, due within 12 months of research completion, will compare the current tax system to an LVT, considering revenue equivalence and the advantages and disadvantages of each.

Government Spending

The bill itself doesn't directly allocate funds. However, it will necessitate government spending on commissioning and conducting the research program, the extent of which is not specified in the bill.

Groups Affected

• Homeowners: Potentially affected by changes in property taxes if the LVT is implemented. The research will assess the impact on residential property prices and tax burdens.
• Businesses: Similarly affected by potential changes to non-domestic rates, and the research will assess the impact on commercial properties.
• Local Authorities: Their funding and responsibilities in relation to local taxation could change significantly under an LVT system.
• Government Departments: Involved in data collection and research; this will require resources and interdepartmental cooperation.
• Landowners: Directly impacted by the LVT, with the unimproved value of their land determining the tax levied.

Powered by nyModel