Institute for Mathematical Innovation

Modelling the impacts of tax reform in London


Pound notesThe Institute for Mathematical Innovation (IMI) has co-authored two reports modelling the impacts of tax reform in London.

Both reports, published in July 2017 by the Institute for Policy Research (IPR), are written by IMI's Commercial Research Associate Dr Catherine Barnaby and IPR Director Professor Nick Pearce.



Estimation of Land Value Tax Revenues

The first report examines the possible revenues that might be generated in the capital by introducing a Land Value Tax (LVT). Estimates of potential LVT is provided for the entire city and each London borough.

These estimates are then compared to the revenue generated from the current domestic tax regime of Council Tax (CT) and (residential) Stamp Duty Land Tax (SD), as well as the non-domestic tax revenues generated from the National Non-Domestic Rates (NNDR) and the (non-residential) Stamp Duty Land Tax.

>>Read the full report


London Stamp Duty Receipts

The second report aims to predict the Stamp Duty Land Tax (SDLT) receivable in London over the next five years following the 2014 reform of how the tax is calculated.

SDLT revenue will depend upon the value of individual properties changing ownership, but also upon the overall performance of the housing market. The model of future SDLT receipts, therefore, includes a range of possible scenarios. 

>>Read the full report