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Friday, 23 August 2019

AS THE 1ST BEST STEP TOWARDS LVT — TRANSFORM COUNCIL TAX INTO 

A TAX ON THE VALUE OF THE PROPERTY (PVT)?


A number of very sincere, well-read, properly thought out Reformers believe that switching Council Tax to LVT, or to its almost-nearly-there version Property Value Tax (PVT) is the best, and maybe the only way out of the Housing Crisis. I list these CT-to-LVT advocates at the end of this article.

Why the switch is attractive to many LVT advocates:  CT is levied on every residential property in all parts of the UK. Despite changes from Rates through Poll Tax and then back to the banded Council Tax, it seems to be accepted as fairish (ref survey). It is also a fairly large revenue source for governments. And since a large chunk of a house price is land value it is close to being LVT already (or is it? This seems like a topic that needs further investigation).

But there are problems with this rosy scenario.