I think any funding of the UBI cannot be distorted by the UBI itself, at any level of the UBI.
Imagine the UBI was raised to a level high enough that essentially no one wanted to work anymore; how could this possibly be funded, insofar as there IS no income to be taxed?
The LVT avoids this particular problem, in that it's driven fully by the value of land within a city. No matter how much or little people work, this land will continue to have value.