Read the story here. Advertise at Before It's News here.
Profile image
By Mark Wadsworth blog
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Killer Arguments Against LVT, Not (490)

% of readers think this story is Fact. Add your two cents.

One objection that often floats about is that while you can establish reasonably reliable relative values for generic types of land and buildings – urban homes, factories, offices, retail premises, farmland etc, there will always be a few outliers.

I agree, things like stately homes and theme parks in the middle of the countryside (or ski-runs in the Cairngorms or whatever outlandish examples people come up with) aren’t bought and sold very often. It’s difficult to say what they’d sell for or rent for, and how that would be split between building value and location value.

So what?

Even with conceptually simple taxes like income tax, there are endless grey areas. Who is and isn’t UK resident? Where’s the line between a gift out of gratitude and a payment for services? What’s a taxable dividend and what’s a non-taxable return of capital? If a shareholder also works for a company, is the money they get from the company dividend, wages or a loan?

There are thousands of pages of legislation, guidance and legal cases on all these issues; it’s sometimes impossible to understand why a Tax Tribunal decided that somebody’s receipt from a certain source was taxable or not, and sometimes they decide the opposite way round to what you’d initially expect, given the basic facts. But they are the Tribunals and I’m not.

Nonetheless, the bulk of what you’d think is taxable income is actually taxed; some people wriggle through loopholes; others have to pay tax on stuff where the sensible person would assume it’s non-taxable. Some tax is never paid and HMRC just writes it off. Overall collection rates about 90% of theoretical receipts. And we accept this as ‘good enough’.

Conversely, LVT assessments for 98% of land by value are a doddle i.e. developed land in urban areas where there is plenty of data on rents and selling prices. Farmland is about 2% by value, that’s not too difficult either (the tax would be tens of pounds per acre per year at most, unless we just exempt it). And collection rates will be very high – who cares where the owner lives? If they run up massive arrears, the land and buildings just get auctioned off and they get the balance.

As to stately homes and theme parks, valuers just have to make up some general rules or haggle on a case-by-case basis. If they end up getting the benefit of the doubt and are under-taxed, so what? Most of the stately homes which the National Trust owns were given away by owners who couldn’t afford the running costs, and even with their membership and entry fees most of them aren’t particularly profitable, so they can’t be worth much, possibly next to nothing i.e. not worth taxing.


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.