Overview

This bill proposes a new system of council tax valuation bands in England, Wales, and Scotland for properties bought or sold after April 1st, 2000. The aim is to redistribute the council tax burden based on updated property values.

Description

The bill mandates the Secretary of State to introduce new council tax valuation bands through regulations. These bands will be based on property prices recorded since April 1st, 2000, using the most recent Land Register data. Properties purchased before this date will remain under the current 1992 valuation system.

The new bands will be as follows:

• (a) below £250,000
• (b) between £250,001 and £500,000
• (c) between £500,001 and £1,000,000
• (d) between £1,000,001 and £2,000,000
• (e) between £2,000,001 and £5,000,000
• (f) between £5,000,001 and £10,000,000
• (g) between £10,000,001 and £20,000,000
• (h) over £20,000,001

Council tax within a billing authority area will be proportionally distributed across these bands according to the ratio 6:8:12:16:24:48:100:250.

Government Spending

The bill doesn't directly specify changes to government spending. The effect on government revenue will depend on the outcome of the new valuation bands and is not specified in the bill itself. It's likely to lead to shifts in council tax revenue distribution amongst different property owners.

Groups Affected

• Homeowners: Those who bought their homes after April 1st, 2000, will see their council tax potentially increase or decrease depending on the new valuation band and the redistribution of tax across bands within their council area.
• Local Authorities: The total council tax revenue for each authority may change slightly, but this is difficult to predict in advance. The redistribution of the tax burden across bands is likely to impact the council’s tax income.
• Government: The bill will likely lead to shifting revenue collection for local government but will not impact central government’s overall expenditure directly.

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