Proposed new tax threatens green and community
27 February 2006
Government plans to introduce a new property development tax - to be called Planning Gain Supplement - are both unworkable and likely to have serious unforeseen consequences, according to LG, a leading corporate and property law firm.
The firm argues, in a response to the Government's consultation, which ends today, that:
- Environmental and regenerative urban projects will be put at risk by the new tax because it is likely to make them uneconomic in many cases. Current proposals do not make allowances for charities, housing associations and similar bodies presenting such projects; and
- Local accountability will be undermined since there will no incentive for developers to offer benefits to the wider community as at present. Instead money raised from local developments will go straight into central government coffers.
"This is a completely new, and potentially extremely unfair, property tax which in its current form will act as a serious disincentive for investment in environmental or other socially beneficial local developments," said Robert Field, partner at LG.
Notes to editors
- Lawrence Graham LLP is a London-based law firm with strong expertise in real estate investment and development.
- The firm has extensive experience of advising both public and private sectors in relation to planning and taxation matters.
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Robert Field
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