Government to tax the view from your house
Government to tax the view from your house
Patrick Hennessy / London Telegraph | November 6 2005
Having a nice view or living next door to a golf course are going to cost householders more in council tax under Labour plans.
Taxpayers are set to be charged hundreds of pounds extra a year if they are in a conservation area, next to an open space, have a swimming pool or tennis court or enjoy full or partial views of the sea, hills, mountains, lakes or rivers.
Extra charges are also expected to be levied on homes with more bedrooms than average, conservatories, large patios or gardens, roof terraces or balconies. Homes in "gated communities" will also face higher bills.
Official documents show that ministers are going to extraordinary lengths to build a detailed database of properties across England, with the intention of placing them in a higher council tax band.
Last night Caroline Spelman, the Tory local government secretary, described the proposed new regime as "more punishing than ever".
She added: "This is the latest stealth tax - it's a tax on the view from your house rather than a fair charge for local services."
The charges will come in after a long-awaited revaluation of each property in England and will take into account the huge rises in property values since the last valuation in 1991.
Earlier this year, ministers postponed the revaluation, which was originally set for 2007, fearing a backlash from middle-income voters in the South, who are expected to face the highest rises.
However, MPs will tomorrow debate plans to let ministers begin the revaluation at a time of their choosing, and effectively without further parliamentary scrutiny.
Detailed documentation from John Prescott's Office of the Deputy Prime Minister, shows that the exercise will cost at least £105 million. Of this, £45 million is going on a new "computer-assisted mass appraisal system" which will help officials to obtain specific details on every property in England.
Properties will be described in great detail using "value-significant codes" to make an assessment for revaluation. Some of the code descriptions, such as living on a "small plot" or on a "main or busy road", having a cesspit, not having street lighting or living near a radio mast or pylon, suggest that certain households will be moved down a band and face lower bills.
However, there are many more codes which appear to add value to a property, including some to denote four different sizes of balcony and roof terrace, living beside a park or on a quiet road or cul-de-sac, in a penthouse, or near convenient public transport.
A whole range of details - from "equestrian facilities" to patio size - will be tabulated. No fewer than 10 "value-significant codes" detail a range of possible views that a property can offer.
Analysis of the revaluation in Wales last year suggests that, in England, the owner of a benchmark Band D property will face an extra £267 on their bill if they go up one band and £534 if they go up two.
A Band D property is one valued in 1991 at between £68,001 and £88,000. Homes in other bands get bills which are proportionately higher or lower.
Miss Spelman said: "The new computer system has been designed to enable John Prescott's department to identify homes with garages, greenhouses, large patios or gardens, near a golf course or in a conservation area.
"These characteristics will then be used by Labour to increase council tax on homes by pushing them into a higher council tax band. This is just the latest stealth tax. It can only mean even higher taxes on hard-working families and pensioners, without any improvements in local services."
