The Treasury’s plan to introduce a development land tax is unworkable and will probably stifle regeneration, says the British Property Federation (BPF).
It claims the “planning gain supplement” could cause messy legal disputes over the way in which the tax is calculated, create blockages in the planning system and generate uncertainty in the development process.
The tax is also unsuited to brownfield or previously developed sites and it removes the link between the developer, the development and director community benefit, the BPF said in response to a consultation paper.
References: The Times 21/02/06 page 42 (Need to know), page 44
