Land windfall tax under fire
The British Property Federation hits out at government plans to tax windfall gains on development of land
The British Property Federation has expressed serious reservations about
plans by government to introduce a tax on land which has appreciated in value
after development.
The criticism came after deputy prime minister John Prescott said ministers
were considering a new land tax called ‘planning gain supplement’, which would
be levied on newly-developed land. The tax would be used to fund new schools and
hospitals.
The Times reports that tax was initially set to apply to residential
property but could also apply to commercial development.
Liz Peace, BPF chief executive, told the paper that she was ‘deeply alarmed’
by the idea as it would threaten regeneration.
The BPF said the a planning gain supplement would be difficult to collect,
unlikely to raise significant sums for infrastructure and deter development.