CAPITAL TAXES
Planning gain supplement
The government has issued a consultation paper on the
introduction of a planning gain supplement (PGS). Legislation would be
introduced to extract some of the windfall gain accruing to landowners from the
sale of their land for residential development.
The following are some
of the principles that may be considered:
- a system for gathering information as to the value
of land proposed for development
- the government would then set a tax rate on these
values
- the granting of residential planning permission
would be contingent on the payment of the PGS
- there may be a lower rate for development on
brownfield sites
- consideration may be given to allowing developers
to pay their contributions in instalments over a period of time.
The government recognises that the introduction of a
PGS would need to be accompanied by transitional measures. These would
help developers already engaged in land sales contracts that were drawn up
before this charge was introduced or those who hold large amounts of land where
planning permission has yet to be secured.
|
