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Land Value Tax implementation – the easy way

Anytown District Council
High Street Anytown AN1 1AA
xx January 202x

Mr & Mrs Smith
1 Acacia Avenue
Anytown AN2 4BQ
Dear Mr & Mrs Smith

Your Domestic Rates bill 202x-2y – property ref. XYZ1234

Following enactment of The Tax Simplification Act 202x, various taxes will be abolished and replaced with a single tax on land and buildings with effect 1 April 202x. The taxes which will be replaced include Council Tax, Stamp Duty Land Tax, Inheritance Tax and the TV licence fee (for full list see enclosed leaflet). These taxes were arbitrary; economically inefficient; prone to avoidance and evasion; and had high compliance and collection costs. The new Domestic Rates will raise the same total revenues as the taxes it replaces in a fair and economically efficient way, with low collection and compliance costs. This will make budgeting and planning easier for government and households alike. Each household’s share of the total taxes paid will be largely unchanged over the medium or longer term. Your local council’s funding will be unaffected.

Valuation and assessment

Your property has been allocated to Band D (large terraced house or typical semi-detached house). According to data compiled by the Valuation Office Agency and HM Land Registry, the average gross rental value of all Band D homes in your assessment area (postcode sector AN2 4, see enclosed area plan) is £11,000 per annum. We have subtracted a general deduction of £4,000 for building and maintenance costs to arrive at a net rental value of £7,000 for Domestic Rates purposes. This is multiplied by the official rate of 25%, so your annual bill is £1,750. Please refer to the enclosed leaflet for details and worked examples.

Ways to pay

Please complete and return one of the enclosed forms within 30 days in the prepaid envelope provided:

  • If you receive income subject to PAYE (salary or private pension), we recommend that you complete and return the attached ‘PAYE details’ form which will enable your employer or pension provider to deduct the amount due directly from your salary or pension in monthly instalments and pay it to HMRC.
  • If you are not in receipt of a salary or a private pension and/or prefer to pay directly, please complete and return the enclosed ‘Direct Debit’ form.
  • If you are over retirement age, you can apply for deferment using the enclosed ‘Deferment’ form.
  • If you have suffered a recent change in circumstances and feel you are unable to pay (involuntary redundancy, divorce or death of a spouse), please complete and return the ‘Hardship’ form.

Failure to complete and return the appropriate form within 30 days may result in interest and penalties being charged.


Please contact us within 30 days by completing and returning the enclosed ‘Appeal’ form in the prepaid envelope if any of the following apply: * you are not the owner of the above property (please pass a copy of this letter to your landlord or other owner). * your property has been converted to flats or you otherwise believe that it does not belong in Band D. you believe that there are other reasons why the net rental value of your property is significantly less than £7,000 per annum.

Please keep a copy of the form for your own records. An unsuccessful appeal may result in your property being allocated to a higher Band. If you submit an ‘Appeal’ form, you must still also complete and return one of the payment forms. Finality If we do not receive an ‘Appeal’ form within 30 days, you will be deemed to have accepted that your property has been allocated to the correct Band and that you accept the assessment. This will be binding on you and any future owners of the property.

Yours faithfully

Ms Henrietta George Director
Council Finance Department