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Local Taxation

Volume 495: debated on Tuesday 7 July 2009

To ask the Chancellor of the Exchequer (1) with reference to the Valuation Office Agency’s performance target on value for money from local taxation, what methodology is used to calculate yield from local taxation; (283996)

(2) what targets have been set for the Valuation Office Agency on value for money in relation to (a) local taxation and (b) inheritance tax; when those targets were set; and how performance against those targets is measured.

I announced the key performance indicators and targets for the Valuation Office Agency for 2009-10 to the House by written ministerial statement on 10 June 2009. They include:

To improve overall value for money on local taxation work by 3 per cent.

To improve value for money on inheritance tax work for HMRC by 5 per cent.

Value for money for local taxation work is calculated as a weighted index of measures covering timeliness, quality and volume of work divided by total cost.

That for inheritance tax work is measured by comparing the Agency’s costs with the estimated tax achieved. In managing its performance against this indicator, the Agency targets resources to those cases requiring adjustment to ensure that the correct amount of tax due is paid.