Planning Gain Taxes Resurrected?
In the Pre-Budget Report the Chancellor announced that the Planning Gain Supplement (PGS) would no longer be introduced. Instead local authorities are to be given the power to apply a new planning charge, the Community Infrastructure Levy (CIL).
However it appears that the Planning Bill could allow the Government to go further than this. Whilst our understanding was that local authorities should apply CIL as a planning condition, the wording of the Planning Bill opens up the possibility that CIL might be turned into a more general tax on developments – just a different form of PGS (?).
If you are involved in developments – you need to make sure you are up to date with the proposed changes.
If you are involved in developments – you need to make sure you are up to date with the proposed changes.
I understand that CIL is to be based on the aggregate cost of local and sub-regional infrastructure whereas betterment levy, developemnt land tax and the now abandoned planning gain supplement were actually or to be based on development value. The developement avlue approach reflected all infrastructures in non-specific ways.
Also, landowners and developers will/should see their tax going to meet local infrastructure requirements - whereas the local tax-take of the earlier actual taxes was not too clear.
I have been researching CIL and suppose it is based on some of the 20 (?) or so "tariff", "charge ", or "levy" schemes of which the Mayor of London levey is the latest to be mooted.
A benefit may be the "overwatch" on infrastructure which the CIL regime will induce.