2.2 Each unit of land is assessed at its unimproved site value, with all surrounding land taken as being in its existing condition. 2.3 All land, including vacant and agricultural land is subject to the tax, and the valuation is on the basis of optimum use within whatever permissions and constraints apply. At lesser rates of tax, the same argument applies pro rata. In present circumstances, we would envisage the introduction of LVT by conversion of the National Non Domestic Rate at the next quinquennial review, ie to come into effect in April 2000, with conversion of the Council Tax would then follow shortly after. Since the LVT valuation is based on the optimum permitted use, where that use is restricted by, for example, SSSI designation, the assessment, and tax payable, would reflect the restriction.
Similar considerations apply proportionately at lesser rates of tax.
Any permitted increase in intensity of use would result in a higher tax liability. In rural areas, there is a tendency for small, mixed, farms to be swallowed up by large farms, which include huge fields which are monocultures. These monocultures have very limited numbers of associated wild-life species, and they also require heavy applications of pesticides and fertilisers. As explained in 2.5 above, LVT would result in reduced capital values of land. Provided that the rate of LVT was sufficiently high, conservation organisations would no longer be faced with the task of raising large sums of money for outright purchase.