Planning: increase in planning related fees

Planning fees have changed with effect from 6 April 2008 under amendment regulations. Guidance is provided in Circular 04/2008.

The regulations and the Circular apply to England only. No doubt further regulations will follow for Scotland and Wales.

Applications governed by the Circular include:

• Applications for permission (including retrospective applications).
• Applications for "variation" of a condition under section 73 Town and Country Planning Act.
• Requests for written confirmation of compliance with conditions (this is new).
• Reserved matters applications.
• "Deemed" applications.
• Applications by local authorities to develop their own land.
• Prior approval applications.
• Advertisement consent applications.
• Monitoring of landfill and minerals permissions.

The guidance does not cover the additional fees under section 93 of the Local Government Act 2003, where the planning authority may charge for pre-application discussions.

The key points of the Circular are summarised below.

Requests for Confirmation of compliance with Conditions (new fee)

This carries a fee of £85 per request. The fee will be payable on all requests made after 6 April 2008, whether or not the permission was granted before that date. Payment must accompany the application. The fee will be refunded if no confirmation is given or if the Local Planning Authority declines to give a confirmation within 12 weeks.

Applications for Outline Permission

Site area of 2.5 ha or less - £335 per 0.1ha
Site area of more than 2.5ha - £8285 for first 2.6ha plus £100 for each additional 0.1ha

Applications for Reserved Matters

Reserved matters include access, appearance, landscaping, layout and scale.

Applications for one, some or all reserved matters are charged at the same rate as a full application for similar development (see fee categories below). The fee paid on the outline permission is ignored.

"Hybrid" Applications

Applications for outline on part of the site; full for the rest.

Note that the Local Planning Authority has a discretion to refuse to accept such applications.

Fees are calculated on each part of the site and added together. There is no maximum.

Fee Categories (for full applications)

Residential (Category 1)

For first 50 dwellings - £335 per dwelling
Over 50 dwellings - £16,565 for first 50 plus £100 for each additional unit

Maximum £250,000

Non Residential (Category 2)

Where no new floorspace is created, or not more than 40 sq m new floorspace - £170 (total)
Between 40 sq m and 75 sq m - £335 (total)
Between 75 sq m and 3750 sq m - £335 for each 75 sq m
Greater than 3750 sq m - £16,565 plus £100 for each 75 sq m above 3750

Maximum £250,000

Agricultural (Category 3)

Outline - as above subject to maximum £125,000
Full – 465 sq m or less - £70
Between 465 and 540 sq m - £335
Between 465 and 4215 sq m - £335 for first 540 sq m plus £335 for each 75 sq m over 540
Greater than 4215 sq m - £16565 plus £100 for each 75 sq m over 4215

Maximum £250,000

Householder Extensions/Alteration (Category 6)

Flat rate fee- £150
If for 2 or more dwellings - £259 in total

Conversion to a dwelling (Category 10)

£335 for each additional dwelling created up to 50 dwellings.
For more than 50 - £16,565 plus £100 for each additional unit over 50.

Maximum £250,000

Other matters

Mixed Use Development

Residential and non-residential.
The calculation is more complex depending on whether there is common space (e.g. access), but essentially the fees for the various areas are calculated and added together.

Prior Approvals (under the General Permitted Development Order)

Agriculture and Forestry - £70
Electronic Communications Code Systems - £335
Demolition - £70

VAT

The Circular confirms that planning applications are processed wholly within Government (local or national) and are therefore non-business activity for VAT purposes. Consequently, there is no VAT on planning fees.

This analysis was written by Jan Hebblethwaite (jan_hebblethwaite@wragge.com), associate in Wragge & Co's Real Estate group.

Lease formalities, refund of payment on account, restrictive covenants, rectification of a contract and land registration. Wragge & Co's real estate experts bring you the latest property law issues.