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ARTICLE · 31 MARCH 2023

Government Proposals For New Infrastructure Levy

Gowling WLG
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As news emerged last week that the government will be consulting on a new Infrastructure Levy, we're looking at how the new proposal, put forward by the Levelling Up and Regeneration Bill...

United KingdomReal Estate and Construction

As news emerged last week that the government will be consulting on a new Infrastructure Levy, we're looking at how the new proposal, put forward by the Levelling Up and Regeneration Bill, aims to replace the system of developer contributions with a more efficient and locally determined levy.

The new charge seeks to reform the existing system of Section 106 planning obligations and Community Infrastructure Levy (CIL) payments in England, and to ensure that local authorities achieve their fair share of contributions linked to gross development value (GDV).

The intention is for the Infrastructure Levy to be charged on the value of the property at completion per square metre and applied above a minimum threshold. It is thought that it should remove the need for planning obligations to be renegotiated if GDV is lower than expected, while allowing local authorities to share in the uplift if GDV's are higher than anticipated.

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