Development land tax

[Grange]

- news item on front page of website 'Government considering introducing tax on uplift in property value as a result of planning permission.... the Government thinks that it will be a good way of preventing empty properties.' This tax will be payable on grant of planning permission.

The way I see it, au contraire, the Government will hinder the development of properties. Imagine that you would like to put on an extension on your property. Now, not only do you have to pay the building costs, you also have to give a backhander to the Government on the uplift in value. So developing an empty building becomes more expensive, not less. So the property is less likely to be developed...

[MrShed]

I'm with you on that Grange....I cant see the logic. When I first read about it, I just couldnt understand how they have worked out that it will lead to MORE development! Maybe someone can enlighten?

[Joe Soap]

I'm with you on that Grange....I cant see the logic. When I first read about it, I just couldnt understand how they have worked out that it will lead to MORE development! Maybe someone can enlighten?

Tis madness.

Firstly it will hit companies/individuals that are trying to develop by giving them a tax bill they will probably not be able to pay.

Secondly it will alter the strategies of companies that have purchased properties with the intention of developing them; they will just wait until they are ready before applying for planning permission. Altering the situation.... not a jot....