Action for Land Tax and Economic Reform

WHAT IS LAND VALUE TAX AND WHY WOULD IT BE GOOD FOR BRITAIN?

Land Value Tax (LVT) is a levy on the unimproved value of land, it disregards the value of building, personal property and other improvements to real estate. LVT has been referred to as "the perfect tax" and the economic efficiency of a Land Value Tax has been known since the eighteenth century. LVT is a progressive tax in that the tax burden falls on titleholders in proportion to the value of locations, the ownership of which is highly correlated with overall wealth and income.

Land Value Tax would be payable each year depending on the location and size of a plot. We advocate that it should replace some existing taxes. It should not add to the overall tax burden, its purpose is to shift tax away from income taxes . Land means the site alone. A vacant plot in a row of houses would be taxed the same as a similar built-on plot. It taxes the size and location of he plot. It does not tax buildings or other works.

There are three strong arguments for the tax. It is socially just. It is the best way of financing infrastructure. And it is economically efficient.

First social justice. Property taxes are fairer than income taxes. In the UK the wealthiest 1% own almost 25% of all property. Today we base the tax system almost entirely on income rather than assets. This means the very rich avoid paying their fair share of taxes. This entrenches inequality.

Second, infrastructure. The benefits of infrastructure are uneven. A fast rail line from London to Birmingham will provide a windfall for property owners in those locations. It won't benefit other locations nearly as much. At present every taxpayer, everywhere, pays. Land value tax corrects this. It recoups costs from those who benefit the most.

Third, economic efficiency. Land value tax is payable whether or not the owner actually uses the plot productively. It penalizes owners of empty houses; owners of run-down sites. Unlike now, they would be taxed at the same rate as a site in productive use. This would promote inner city regeneration. There is a myth that Land Value Tax would destroy green spaces. In fact, the City of New York made a profit when it created Central Park. It greened over existing built-up areas. The increased property tax from surrounding neighbourhoods paid for this.

In summary, Land Value Tax is pro-enterprise and green. Its introduction would allow other taxes to be reduced; especially those on income and profits. Enterprise would be better rewarded. Building on a property doesn't change its location value. The location value of land comes from geography -a beautiful view; or from investment elsewhere - for example a high speed railway. Location value is maintained by society. It just and efficient to tax it.

Watch our Spring 2022 Conference Fringe

Latest News

Johann Lamont signals support for land tax plan

SCOTTISH Labour leader ­Johann Lamont has signalled support for a new land tax as part of a shake-up of the way local services are provided in Scotland. (Scotsman) http://www.scotsman.com/news/politics/top-stories/johann-lamont-signals-support-for-land-tax-plan-1-3105817

23 Sep 2013
View

ALTER at Glasgow 2013 - Federal Conference report

Its official: firstly that Land Value Taxation (LVT) is a more popular policy among Lib Dem activists than Mansion Tax (MT); secondly that a "full scale review" of "how it might best be implemented" in the UK will be commissioned "early in the next parliament" if we are in Government again.

TV
23 Sep 2013
View

The Flavour of the film: A Taxing Question

ALTER has worked with the Coalition for Economic Justice (CEJ) all summer to bring you The Taxing Question of Land - a 30-minute film on U-tube, launched by RSA on 3rd September, all about LVT. A young film director, new to the subject, was given free rein (and £14k) to present the subject in a way that would appeal to young, intelligent people in the UK today.

11 Sep 2013
View

From the Lib Dem ALTER YouTube Land Tax Playlist

This website uses cookies

Like most websites, this site uses cookies. Some are required to make it work, while others are used for statistical or marketing purposes. If you choose not to allow cookies some features may not be available, such as content from other websites. Please read our Cookie Policy for more information.

Essential cookies enable basic functions and are necessary for the website to function properly.
Statistics cookies collect information anonymously. This information helps us to understand how our visitors use our website.
Marketing cookies are used by third parties or publishers to display personalized advertisements. They do this by tracking visitors across websites.