From the FT:
Sir, There is no capital gain to be had with houses, except for those of outstanding artistic merit (“Homeowners’ £18bn-a-year tax relief criticised”, July 26). Bricks and mortar wear out and require replacement or repair to maintain their value. House price inflation is invariably the result of land value increases.
With annual land value taxation there would be no increase at all on which to base capital gains tax. Instead the government would have a vast, secure revenue stream — in fact a virtuous circle, where local public (and private) investment leads to increased land value, and hence increased revenue to spend on public goods and services.
Carol Wilcox, Secretary, Labour Land Campaign, Christchurch, Dorset
Debate Magazine
