Taxation - one good return deserves another – the (PGS)

“It doesn’t have to be taxing…..” to quote the government’s, we feel rather weak saying, on the 31 January deadline tax return publicity. Here anyway are the property taxes, the results of the Christmas Quiz - just in case any of you looked at the December 2006 Accountant’s letter:   see   www.rdn.co.uk/newsroom 

Inheritance Tax,
Capital Gains Tax,
Betterment Levy,
Estate Duty,
Stamp Duty Land Tax,
Planning Gain Supplement, (PGS)
Development Land Tax,
Capital Transfer Tax,
Value added tax,
Community Land Tax,
Stamp Duty

PGS Another opportunity for Accountants.
 
Last month we pointed out that PGS was the odd one out as it has not (yet) been introduced.

PGS will mean yet another return on which accountants will have to advise. Comments are invited on the consultation document (below* ) by 28 February but the procedure is planned as follows:

1 Planning permission for development granted. This will be the valuation date and the date on which the tax is calculated being the value with permission less the “current use value” multiplied by the PGS rate.

2 The tax is calculated by the HMRC!

3 The PGS return is filed. They promise to deal with it ASAP!

4 A Start notice is issued.  The PGS payment will be due 60 days after the start notice. There will be powers to charge interest and to stop the development if the PGS is not paid!

5 The principle behind the PGS means that any development where planning permission gives an additional value to the developer, not just new development will be included, we hope subject to “de minimus” considerations.

Valuation Surveyors and Accountants

Market value and current use value are well known concepts to valuation surveyors so they can assist accountants to provide a service to their developer clients. The writer also had a working knowledge of the previous, Development Land Tax from the other side of the fence!

Perhaps we should therefore say “It doesn’t have to be taxing”  Urgh!

*  Click the link below for the consultation document.

http://www.hmrc.gov.uk/consultations/paying-pgs.pdf    

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Log on for more information and advice:                  www.rdn.co.uk   

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This is part of a regular series of topical articles provided exclusively by RDN Chartered Surveyors. If you would like further information or add your comments please reply to this e mail or contact Roger Nelson on 0800 902 0466