How land value tax should be applied to land subject to a mortaged was discussed in a talk given by Gavin Putland to the International Union for Land Value Taxation at its conference in April 2010. The text can be downloaded here

This is best understood by first consider a simple example, such as a 10 storey block (with a lift) with one flat on each floor, each flat being identical in plan. At a first approximation the land value tax liability would be shared equally.

When valuation is made for LVT assessments, it is assumed that each plot of land is in optimum use in accordance with the planning system. A criticism often made is that there can be uncertainty about what the planning authorities would allow. Such a criticism is valid only if valuations are based on selling prices, since market values take account of the possibility of planning consent in the ...

Details of the practical techniques for land valuation are described in the reports produced by the surveyors who conducted two surveys in Whitstable, Kent, in 1964 and 1973. These days, the task would be simpler due the availability of computerised geographical information systems (GIS) which ease the task of number-crunching.Report of 1964 surveyReport of 1973 survey

How would LVT interact with the British planning system? The Campaign received a list of questions on this subject recently from a research student. The questions and our responses are published here as they are so often raised.

CAN YOU HELP? A student writing a dissertation about LVT has asked for information about the practical barriers to its implementation. If you would like your comments to be passed on, please contact via the webmaster.

The practicalities of LVT valuation are discussed in these two reports by the valuers on the valuation exercises carried out by Hector Wilks and Co, Chartered Surveyors, in 1964 and 1973. The valuation list produced was of annual values and the reports explain how what often dismissed as too difficult was actually done. Report on 1964 valuation Report on 1973 valuation

There is a more interest in promoting LVT in the present state of the economy, and quite right too. But campaigners need to be very clear what they are promoting and why, and to be able to defend their position. I could not argue against some of the attacks that can be made against LVT on capital values and on no account should we be advocating Capital Value assessment.

More arguments against LVT come from an advocate of the Flat Tax. The author suggests a 20% flat rate above £20k, Why 20%? Why 20k allowance? Would that be the same for a big company as a one-man business? What counts as deductable expenses? It isn’t quite as simple as it looks at first glance. The objector raises some complex and interesting points (below, italics) which are here answered.

This question is an old one amongst advocates of LVT. Henry George himself argued for a tax on rental values, preferably 100%. At some point since, the concept has been shifted and many LVT advocates argue, or will settle for, a tax on capital values (selling prices). This is a mistake.