1. Mark Wadsworth LLB BA ACCA ATII
My day job is a tax adviser at a firm of chartered accountants (since 1997)
Have been researching tax and welfare simplification and reform (since 2006)
Founder member of Young People’s Party (since 2012)

2. UK land area by usage

3. UK land area by usage... completely irrelevant in land value terms

4. UK land values by usage

5. Land values – a million to one!
Low grade grazing land £50/acre = 0.1p per sq ft/year
The value of farm land goes up a hundred times when planning is granted
Land in city centres is worth more than in the outer suburbs
The larger the town, the higher the land values and the higher the ratio between the town centre and the outer suburbs
In London, the ratio is 100 to 1
Prime retail location on Bond Street incl. rates = £1,000/sq ft = 100,000p per sq ft/year
100,000p to 0.1p = 1 million to one!

6. Current taxes on housing

7. LVT on land used for housing

8. Business rates and SDLT on commercial land and buildings

9. LVT on commercial land

10. Farmland pays no tax and benefits from subsidies!
we don't need no regulation: to play cricket!

11. Persimmon’s 2015/16 results (1)
New homes built and sold – 14,000
Additions to land bank – 14,000
Land bank – 94,000 plots
Employees – 4,400

12. From Persimmon’s December 2015 accounts
“We control land which has potential for development but requires further promotion or investment in order for this potential to be realised.
“Our dedicated land teams maintain and replenish our strategic land portfolio and our planning teams promote land through the planning system.
“Maintaining our landbank gives continuity of supply and enables us to be selective in our land acquisitions.”
17,700 acres of strategic land
54,300 Plots with implementable planning consent

13. Persimmon’s 2015/16 results (2)
Builder’s profit
14,000 x £50,000 = £700 million
Land value gains
100,000 x £10,000 = £1,000 million

14. Granting more planning permissions without LVT won’t make any difference
Source: Neal Hudson of Savills

15. The price the developer will pay for a site is a residual figure

16. Taxes triggered when land is brought into use (“development taxes”)
CGT when farmer sells
SDLT when developer buys
Planning fees
S106 agreements
Community Infrastructure Levy
Affordable housing quotas
less VAT rebates during construction
SDLT when finished homes are sold

17. Residual land values are depressed by taxes

18. All development taxes can be replaced by LVT

19. Farmland subsidies and CGT discourage development

20. LVT encourages development

21. Tax paid during construction period would fall under LVT

22. Development taxes are an irregular source of local government finance

23. LVT is a more stable and long term source of local government finance

24. SDLT and CGT discourage ‘right sizing’ (1)

25. SDLT and CGT discourage ‘right sizing’ (2)

26. LVT encourages ‘right sizing’ (3)

27. The Young People’s Party supports LVT
Keeps house prices low and stable
Encourages efficient use of existing housing
Encourages new development where needed
Older generations benefitted from low house prices (mortgage caps, rent controls, tenant protection, Domestic Rates etc)
Levels the playing field between generations