The Labour party have incorporated Site Value Tax into their plan for recovery. The party include the tax in their Plan for Stability and Growth, saying that they accept the need to introduce it “to prevent higher taxes on work”.
Labour do not however feel that there has been necessary work done on the tax yet and propose a period of study to figure out a system that can “[take] account of the value of property in different regions… exempt some categories of homeowners… and take account of those who have recently paid large sums in stamp duty or who are in negative equity.” They suggest 2014 as the outline date for implementation and propose an interim increase of the second homes levy by €300, with expected revenue of €95m.
Smart Taxes is very happy to see the Labour Party adopt Site Value Tax, although we think they are underestimating both the tax’s potential returns, and the ease with which it can be implemented. We hope to discuss these issues with Labour Party representatives to contribute to policy development.
