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Land betterment charge is tax
6. A tax called a land betterment charge is charged in accordance with the provisions of this Act in respect of each chargeable consent given in relation to a development or subdivision of, or a controlled activity with respect to, any land.
Tax is on increase in value of land
7.—(1) A land betterment charge payable in respect of any chargeable consent given in relation to a development or subdivision of, or a controlled activity with respect to, any land is on the increase in the value of the land likely to accrue from the giving of the chargeable consent that is leviable under this Act. (2) For the purposes of this Act, the leviable increase in the value of any land likely to accrue from the giving of a chargeable consent in relation to a development or subdivision of, or a controlled activity with respect to, the land is the prescribed percentage according to section 8 of the increase in the value of the land likely to accrue from the giving of the chargeable consent, the amount of which must be ascertained in accordance with this Act.
Leviable increase in value of land
8.—(1) Subject to subsection (2), the prescribed percentage of the increase in the value of any land likely to accrue from the giving of a chargeable consent in relation to a development of the land is any percentage prescribed by Regulations —(a) made under section 65; and (b) in force at the relevant point in time pertaining to that chargeable consent. (2) In the case of a chargeable consent given in relation to —(a) a development or a subdivision of any land by way of varying a special condition in a directly allotted State title relating to the land, but not the following:(i) a development of land without a material change of use of the land as described in the directly allotted State title; (ii) a directly allotted State title (but not a concessional State title) granted to a public authority; or (b) a development or a subdivision of, or a controlled activity with respect to, any land by way of varying any of the following restrictive covenants in a State title relating to the land:(i) a restrictive covenant in a concessional State title; (ii) a controlled activity restrictive covenant; (iii) a subdivision control restrictive covenant, the prescribed percentage of the increase in the value of the land likely to accrue from the giving of the chargeable consent is a percentage that — (c) is higher than the percentage prescribed for the purposes of subsection (1); and (d) is prescribed by Regulations —(i) made under section 65; and (ii) in force at the relevant point in time pertaining to that chargeable consent. (3) In the case of any chargeable consent given in relation to a development of any land by way of any of the following:(a) a planning permission or conservation permission; (b) a varying of a restrictive covenant in a State title (with or without a special condition) or a concessional State title relating to the land that is neither —(i) a controlled activity restrictive covenant; nor (ii) a subdivision control restrictive covenant, the relevant point in time pertaining to the chargeable consent is, for the purposes of this Act — (c) the date a planning permission or conservation permission (as the case may be) is granted in respect of the development of the land to which the permission relates, where —(i) no provisional permission is granted with respect to the development of the land; and (ii) no lodgment is made of any plans for development that may be deemed authorised without express written permission; (d) the date where provisional permission is granted with respect to the development of the land — where any provisional permission is granted with respect to the development and written permission is granted, for that same development of land under section 14 or 17(4) (as the case may be) of the Planning Act 1998, following not more than one extension of the provisional permission; or[Act 23 of 2023 wef 18/12/2023] (e) the date where provisional permission granted with respect to the development of the land is last extended — where any provisional permission is granted with respect to the development and written permission is granted, for that same development of land under section 14 or 17(4) (as the case may be) of the Planning Act 1998, following 2 or more extensions of the provisional permission.[Act 23 of 2023 wef 18/12/2023] (4) For the purposes of this Act, the relevant point in time pertaining to any chargeable consent not mentioned in subsection (3) is whichever of the following dates that is applicable:(a) for a chargeable consent that is accepting a lodgment of any plans for a development of the land deemed authorised without express written permission — the date of the acceptance of the lodgment; (b) for a chargeable consent that is varying a restrictive covenant in a State title that is —(i) a controlled activity restrictive covenant; or (ii) a subdivision control restrictive covenant, the date the chargeable consent is given. (5) This section is subject to Part 3.
Ascertaining amount of land betterment charge
9.—(1) Subject to subsection (3), the amount of the land betterment charge in respect of any chargeable consent given in relation to a development or a subdivision of any land not mentioned in subsection (2) is the amount ascertained by the Table of Rates method. (2) The amount of the land betterment charge in respect of a chargeable consent given in relation to —(a) a development or a subdivision of any land by way of varying a special condition in a directly allotted State title relating to the land, but not the following:(i) a development of land without a material change of use of the land as described in the directly allotted State title; (ii) a directly allotted State title (but not a concessional State title) granted to a public authority; or (b) a development or a subdivision of, or a controlled activity with respect to, any land by way of varying any of the following restrictive covenants in a State title relating to the land:(i) a restrictive covenant in a concessional State title; (ii) a controlled activity restrictive covenant; (iii) a subdivision control restrictive covenant, is the amount ascertained by the Valuation method. (3) The amount of the land betterment charge in respect of any chargeable consent given in relation to a development of any land as described in subsection (1) may be ascertained by the Valuation method in lieu of the Table of Rates method where —(a) all taxable persons concerned elect, before a liability order is given to the taxable persons, for the Valuation method to be so used; or (b) the Table of Rates method is inapplicable to the particular development. (4) Any election under subsection (3)(a) must —(a) be in writing by or on behalf of the taxable person concerned; (b) be in a prescribed form (if prescribed); and (c) be given to the Authority within a prescribed period after the relevant point in time for the chargeable consent concerned, or such extension of that time as allowed by the Authority in any particular case. (5) Any election under subsection (3)(a) is irrevocable.
Valuation method
10.—(1) The Valuation method of ascertaining the amount of the land betterment charge in respect of any chargeable consent given in relation to a development or subdivision of, or a controlled activity with respect to, any land involves a valuation by a designated valuer according to section 8(1) or (2) and Part 3 (whichever is applicable) of the increase in the value of the land likely to accrue from the giving of the chargeable consent. (2) For the purposes of this Act, the Chief Valuer or another individual may be appointed by the Authority to ascertain the amount of land betterment charge by the Valuation method. (3) However, no land betterment charge ascertained using the Valuation method is payable in respect of any chargeable consent in relation to a development or subdivision of, or a controlled activity with respect to, any land where the price the land might reasonably obtain if sold at the relevant point in time pertaining to the chargeable consent, does not exceed the price if sold before that relevant point in time.
Table of Rates method
11.—(1) The Table of Rates method for ascertaining the amount of the land betterment charge in respect of any chargeable consent in relation to a development of any land involves a calculation by —(a) first, deriving the post‑chargeable valuation of the land and the pre‑chargeable valuation of the land using the rates and methods prescribed by Regulations made under section 65 or Part 3; and (b) then, subtracting the pre‑chargeable valuation of the land from the post‑chargeable valuation of the land. (2) However, no land betterment charge ascertained using the Table of Rates method is payable in respect of any chargeable consent in relation to a development of any land where the post‑chargeable valuation of the land does not exceed the pre‑chargeable valuation. (3) Subject to Part 3, for the purposes of assessing any land betterment charge payable in respect of a chargeable consent given in relation to any land, the pre‑chargeable valuation of the land must take into account the following:(a) the last authorised development of the same land, where the following were paid or payable:(i) all development charges earlier paid under the Planning Act 1998 or the predecessor Act; (ii) all land betterment charges earlier paid under this Act; (iii) all penalty tax earlier paid under this Act; (b) any restrictive covenant expressed in a State title for the land, binding the owner of the land under the State title —(i) to refrain from using or developing the land in a particular way, or from doing a particular thing in relation to that land; (ii) to not sublet, subdivide or otherwise deal with the land, or part of the land, without the permission of the Authority; or (iii) to construct, replace or maintain, or limit the type, style or proportion of building materials that may be used in the construction, replacement or maintenance of, any building on that land, if comparably higher than paragraph (a); (c) any exemption or remission from any liability to pay in connection with the last authorised development of the same land —(i) any development charge under the Planning Act 1998 or the predecessor Act; or (ii) any land betterment charges under this Act; (d) any concessionary relief under section 13 from any liability to pay any land betterment charges in connection with the last authorised development of the same land; (e) the absence of any liability to pay any tax mentioned in paragraph (a) in connection with the last authorised development of the same land. (4) However, the following must be disregarded in determining the pre‑chargeable valuation of any land:(a) any development of the land which is not an authorised development; (b) any use of the land which could be restrained by any court or is contrary to law; (c) any development of the land authorised by a planning permission or conservation permission granted for a specified period not exceeding 10 years; (d) any development of the land where the planning permission or conservation permission granted for it has lapsed under section 20 of the Planning Act 1998 except to the extent that any of the following were paid for that development:(i) development charges earlier payable under the Planning Act 1998 or the predecessor Act; (ii) land betterment charges payable under this Act; (e) any development of land for use as a hotel or part of a hotel authorised by the grant of written permission under the predecessor Act between 18 April 1968 and 31 December 1969 (both dates inclusive) on any prescribed land if —(i) the use of the development as a hotel or part of a hotel has ceased; or (ii) the application for a planning permission or conservation permission being considered by the competent authority for the land is for development of the land for a use other than as a hotel; (f) any development of land, being a development in respect of which development charge was exempted or remitted under the Planning Act 1998, if —(i) any term of an exemption or a remission under that Act provides that the development (for which development charge was exempted or remitted) must be disregarded for the Development Baseline under that Act; or (ii) any term of the exemption or remission under that Act has ceased to be or is not complied with; (g) any development of land, being a development in respect of which concessionary relief under section 13 was applied, if —(i) any term of the concessionary relief provides that the development must be disregarded for the pre‑chargeable valuation of the land; or (ii) any term of the concessionary relief has ceased to be or is not complied with; (h) any matter mentioned in subsection (5). (5) Subject to subsection (2) and Part 3, for the purposes of assessing any land betterment charge payable in respect of a chargeable consent given in relation to any land, the post‑chargeable valuation of the land must take into account whichever of the following that the land may be put to:(a) the development of the land a person is entitled to carry out on the land as a result of the giving of the chargeable consent; (b) the entitlement to carry on or not carry on, or the release from carrying on, a controlled activity as a result of varying a controlled activity restrictive covenant under the chargeable consent given. (6) However, any development of land previously authorised by a planning permission or conservation permission granted for a specified period not exceeding 10 years must be disregarded in determining the post‑chargeable valuation of the land for the purposes of assessing any land betterment charge payable in respect of a current chargeable consent given in relation to a development or subdivision of, or a controlled activity with respect to, the land.
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