Overview

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

Description

The bill introduces eight new council tax valuation bands based on property prices at the time of sale, using data from the Land Registry. These bands will apply only to properties bought or sold after April 1st, 2000. Properties not bought or sold since then will remain in the current bands and subject to the current council tax rules. The new bands will maintain a specific proportional relationship to one another in terms of tax payable, with the lowest band paying 6 units, increasing to 250 units for the highest band. The exact council tax payable within each band will be determined by individual local authorities. The bill specifies that the new system will come into force immediately upon being passed and will apply only to England.

Government Spending

The bill does not directly specify an increase or decrease in overall government spending. The impact will depend on the distribution of property values across the new bands and the tax rates set by each local authority. It is anticipated that the new system could lead to significant increases in revenue from some higher-value properties and possibly reduce revenue from others. Overall government revenue could increase or decrease depending on these factors. No precise figures are provided within the bill itself.

Groups Affected

• Homeowners: Homeowners of properties bought or sold after April 1st, 2000, will see their council tax potentially increase or decrease depending on which band their property falls into under the new system.
• Local Authorities: Local authorities will have the responsibility of implementing the new valuation bands and will need to adjust their council tax rates accordingly, which will impact their budgets.
• Council Tax Payers: Council tax payers in England who own properties bought or sold after April 1st, 2000 will be directly affected by the changes.

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