Planning Gain Supplement (PGS) is a proposal for a fixed levy on the enhanced land value after it receives planning permission. It is the Government’s intention to move forward with this new land tax if, after further consultation, it continues to be deemed workable and effective and PGS will then come into force in 2009. The property industry is firmly against the implementation of PGS and there was qualified support for an extended role of S106 Agreements.

Calculating PGS

Below is how we expect PGS to be calculated with an example to illustrate.

Current Use Value (CUV) Planning Value (PV)