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 back to Parliament within 12 months.

Description

The bill requires a comprehensive research program on the potential replacement of existing local taxes (Council Tax and non-domestic rates) in England with a new LVT system. This research must consider:

• Efficient administration and implementation: Exploring how to effectively administer and implement an LVT system in England.
• Data utilization: Leveraging existing geographical information systems (GIS) and data from organizations like the Land Registry and Valuation Office to inform the research.
• Transitional arrangements: Developing plans for a smooth transition from the current tax system to LVT, including handling existing tax systems for residential and non-residential properties. This also includes mechanisms for handling appeals and disputes.
• Economic impact assessment: Evaluating the potential effects of LVT on property markets, land use, economic productivity, and the overall economy.
• International comparisons: Reviewing international experiences with LVT to inform the research.
• Pilot programs: The research should include proposals for pilot programs to test the practicalities of data management and valuation within a LVT system.

Government Spending

The bill itself does not directly allocate funds. The cost of the research program, including data acquisition, analysis, and reporting, would need to be determined and budgeted for separately by the government.

Groups Affected

• Homeowners: Potentially affected by changes to property taxes, with a possible shift from Council Tax to LVT.
• Businesses: Potentially affected by a shift from non-domestic rates to LVT.
• Local authorities: Affected by the potential change in revenue streams for funding local services.
• Government agencies: Involved in data collection and research, including the Land Registry, Valuation Office, and others.
• Property developers and investors: Their activities could be impacted by changes in land values and taxation.

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