ABSTRACT
The present system of local business taxation of Britain is a non-domestic property tax on the net annual value (NAV) of business property to which is applied a locally variable tax rate (rate poundage). The 1986 Green Paper (G.B. Government, 1986) proposes to replace the local discretion over tax rates by imposing a nationally uniform rate poundage: this gives a so-called unitary business tax — UBT. It is proposed that the proceeds of the non-domestic rates will then be redistributed between local authorities according to their adult residents’ population. In addition local authorities may be left the discretion to levy an additional local tax rate at 5% of the national UBT tax rate. The proposals are being implemented in Scotland to come into effect in 1989.
