The ODPM has quashed fears that it will levy a double planning tax on developers.
Planning minister Keith Hill said on Tuesday that the government would not implement both tariffs it was considering: an optional charge and a planning gain supplement.

The Planning & Compulsory Purchase Act, which gained royal assent on 13 May, allows for the optional charge. The details are being worked out by a ministerial taskforce that is due to report in the autumn.

"Supplementary planning gain" – which would tax the value of land when it gets planning permission – was proposed by Kate Barker in her March review of housing supply. The Treasury will decide whether it will take this up at the end of 2005.

Developers had feared they could end up having to pay both charges.

Michael Gallimore, planning partner at law firm Lovells, said: "We welcome the statement but still need to know when we are going to find out which of these systems the government is going to go for."

Hill denied the act had lost its focus during its lengthy passage through parliament. However, he conceded that there were fears that increased community involvement in the act could slow down planning.

Source

Housing Today