Tag Archives: Real estate appraisal

A TAX THAT THE RICH COULDN’T AVOID.

English: The Land Registry

English: The Land Registry (Photo credit: Wikipedia)

DID YOU KNOW THAT TWO THIRDS OF  THE 60 MILLION ACRES OF LAND IN THE UK IS OWNED BY JUST 0.36% OF THE POPULATION?

At a time when so many people need decent, affordable housing, when house building is at an all time low and people are desperate for jobs the rich minority still squirrel away their wealth in tax havens to avoid paying their way. Some of these socially irresponsible people sit on undeveloped land that could be released for building projects that would provide houses and jobs for the many who need them.

By sitting on this land, waiting for its price to go up so they can sell it at a profit, these people can ‘earn’ millions without the inconvenient effort of hard work.

This month Class, the Centre for Labour and Social Studies have published a paper proposing something they call a Land Value Tax.

This would be a tax on all land except for that which lies under ordinary people’s homes. Wealthy homeowners would be expected to pay while those on limited incomes could defer payment.

In order to do this all land would have to be registered with the Land Registry. According to the report only about three quarters of land is currently registered and its proposed that enforceable, compulsory registration be brought in so the tax would be completely unavoidable. You can’t hide your land away in a tax haven!

The tax would be based on its ‘optimum permitted use’ so those sitting on undeveloped land watching its price rise in order to sell at a profit would be hit hardest. The report says this would give them a strong incentive to develop the land with a positive knock on effect of creating more houses and jobs.

The report’s author, Andy Hull, a freelance researcher and consultant states:-

“Devised carefully, it would demand a greater contribution from the wealthy – not least the international elite with their mansions in London – without affecting ordinary homeowners. And it would be one tax that the rich and powerful could not dodge.”

You can read the full report here:-

http://classonline.org.uk/docs/2013_05_Think_piece_-_In_Land_Revenue_(Andy_Hull).pdf