Land Value Tax Act 2021

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:

1 Land value tax

1. A land-value tax shall be implemented to serve as a source of funding for HM Treasury.
   1. Upon implementation, the following rates shall be set:
   2. a standard rate of 0.05% on all land (unless otherwise specified), with an increase of 0.0375% per annum.
   3. a rate of 0.02% on all gardens, with an increase of 0.0375% per annum
   4. a rate of 0.1% on all second homes, empty homes, non-resident properties, and corporate-owned properties, with an increase of 0.05% per annum.
2. The land-value tax shall rise as specified in this legislation over the course of a four-year transition period, at the end of which the land-value tax shall be fixed at that point unless modified by future legislation. The resulting permanent rates shall be:
   1. 0.2% for general land
   2. 0.17% for gardens
   3. 0.3% for second homes, empty homes, non-resident properties, and corporate-owned properties
3. All landowners shall have the option to defer payment of the land-value tax until their death or until the sale of the land in question, with the owed tax accruing interest at a rate equal to the inflation rate.
4. All revenue shall go to HM Treasury general fund and shall be accounted for as part of the government’s budget.

2 Related Taxes

1. The Stamp Duty Land Tax shall be repealed.
2. Principal Primary Residences (PPR) shall no longer be exempt from Capital Gains Tax, and they shall be taxed at normal Capital Gains Tax rates.
3. The mansion tax of 1% on properties valued at £3 million or more shall be repealed.

3 Implementation

1. Prior to the implementation of this bill, the Ministry of Housing, Communities and Local Government shall conduct an assessment of all land values in England, Scotland, and Wales.

   1. Should the assessment not be completed by the implementation date of this act, the Secretary of State for Housing, Communities and Local Government may sign an order postponing the implementation an additional six months. This can be done no more than twice, after which the tax must be implemented using the most recent data on land values.
   2. If a full assessment had already been completed within the two years prior to this act’s passage, a new assessment will not be required.

2. The Ministry of Housing, Communities and Local Government shall conduct a reevaluation every three years after the passage of the bill, assessing shifts in land values and examining the impacts of the land-value tax. This reevaluation shall be publicly released after approval by the Secretary of State for Housing, Communities and Local Government.

4 Short title, commencement and extent

1. This Act may be cited as the Land-Value Tax Act 2021.
2. This Act comes into force six months after royal assent.
3. This Act extends to England, Scotland, and Wales.