What is Labour’s Garden Tax and how could Corbyn’s new Land Value Tax affect me? All you need to know
Jeremy Corbyn plans to replace Council Tax, and possibly even Business Rates, with a Land Value Tax
LABOUR is planning to replace Council Tax with a levy on land, which could see the household bill treble.
But what is the levy dubbed the "Garden Tax" and how could it affect you? Here's the lowdown...
What is Labour's Garden Tax?
Labour plans to replace Council Tax, and possibly even Business Rates, with a Land Value Tax - dubbed the "Garden Tax".
The annual tax is calculated using the market rental value of land so would hit those with large gardens particularly harshly.
It's believed the move could rake in millions, amid reports an early blueprint suggested slapping a levy of 3 per cent on the value of a homeowner’s land.
It's also been suggested the levy could apply to agricultural land with fears food prices could be pushed up.
The Labour Party's manifesto commits it to “a review into reforming council tax and business rates and consider new options such as a land value tax, to ensure local government has sustainable funding for the long term.”
How could the Land Value Tax affect me?
The Labour Land Campaign plan would see councils able to tax families with a “above average” sized gardens — but Valuation Office Agency data shows this could hit 10.2 million houses.
Senior Tories have said Labour's plans would result in an average bill of £3,837 across England – a 224 per cent increase on the current £1,185 average council tax bill, which is based on property.
Experts have previously warned that a Land Value Tax would force home owners to sell off their gardens in a desperate bid to lower their bills.
Homeowners with gardens, as well as farmers, would be worst affected, while people living in flats without outside space would get off more lightly.
Land prices in London, the south-east and market towns would also see residents of these areas facing big bills.
The Tories have warned more than 10 million Brits face tax inspectors sizing up their back yards under the Labour plans.
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