| New Property Tax |
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The Government has announced a new property tax.... ...that will apply if you intend to develop all or part of your land called Planning Gain Supplement or PGS. It will tax the increase in value of your land arising from a grant of planning permission, and based on an increase in value following on from that permission, and payable on the commencement of development. The tax will appy to both residential and commercial developments and is expected to be introduced in or around 2008. Property owners will have to obtain two valuations of their land, one prior to development and one afterwards, with the tax based on the difference between the two. We can advise clients entering into option agreements or similar for the sale or development of their land as to how this additional cost may be factored into the heads of terms of agreement with a view of mitigating the potential loss that will otherwise occur. For further details, please contact David Taylor either by telephone or via email to This email address is being protected from spam bots, you need Javascript enabled to view it |
