Abstract
Land Value Tax (LVT) revenues can be estimated based on the underlying land value and the use
of the land. This report gives estimates of potential LVT for each London borough and the whole
of London. These estimates are compared to revenue from the current tax regime: Council Tax
(CT) and (residential) Stamp Duty Land Tax (SD) for domestic taxation and, for non-domestic tax,
the National Non-Domestic Rates (NNDR) and (non-residential) Stamp Duty Land Tax. In each
scenario, the level of LVT is adjusted to keep the total revenue across the whole of London static.
For domestic tax based on the land area of domestic buildings:
•
An LVT of 1.97% gives London-wide domestic revenue of £6.5bn, similar to CT plus SD
•
An LVT of 1.04% gives London-wide domestic revenue of £3.4bn, similar to CT only
For domestic tax based on the area of domestic buildings plus domestic gardens:
•
An LVT of 0.62% gives London-wide domestic revenue of £6.4bn, similar to CT plus SD
For non-domestic tax:
•
An LVT of 2.85% gives London-wide non-domestic revenue of £6.4bn, similar to total NNDR
net collectable revenue
•
An LVT of 3.41% gives London-wide non-domestic revenue of £7.6bn, similar to NNDR plus
non-residential Stamp Duty
of the land. This report gives estimates of potential LVT for each London borough and the whole
of London. These estimates are compared to revenue from the current tax regime: Council Tax
(CT) and (residential) Stamp Duty Land Tax (SD) for domestic taxation and, for non-domestic tax,
the National Non-Domestic Rates (NNDR) and (non-residential) Stamp Duty Land Tax. In each
scenario, the level of LVT is adjusted to keep the total revenue across the whole of London static.
For domestic tax based on the land area of domestic buildings:
•
An LVT of 1.97% gives London-wide domestic revenue of £6.5bn, similar to CT plus SD
•
An LVT of 1.04% gives London-wide domestic revenue of £3.4bn, similar to CT only
For domestic tax based on the area of domestic buildings plus domestic gardens:
•
An LVT of 0.62% gives London-wide domestic revenue of £6.4bn, similar to CT plus SD
For non-domestic tax:
•
An LVT of 2.85% gives London-wide non-domestic revenue of £6.4bn, similar to total NNDR
net collectable revenue
•
An LVT of 3.41% gives London-wide non-domestic revenue of £7.6bn, similar to NNDR plus
non-residential Stamp Duty
Original language | English |
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Place of Publication | Bath |
Publisher | Institute for Policy Research, University of Bath |
Number of pages | 15 |
Publication status | Published - Jul 2017 |