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Development Charge (Charities)

Volume 463: debated on Tuesday 22 March 1949

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asked the Minister of Town and Country Planning if he is aware that the fear of a development charge is preventing charitable institutions, not run for private profit, from acquiring the properties essential for the carrying out of their responsibilities, and if he will take steps to provide exemption from development tax in such cases.

The Parliamentary Secretary to the Ministry of Town and Country Planning
(Mr. King)

There is no ground for such fear. Provided that a charity pays no more for land it requires than the value of that land for its existing use, the total cost of the land after payment of development charge ought not to be more and might well be less than the charity would have paid before the Act was passed. For further details, I would refer the hon. Member to Part III of the Practice Notes on Development Charges which the Central Land Board have just issued.

Does the answer mean that it applies also to buildings acquired by charitable institutions? Can the hon. Gentleman give an assurance to charitable institutions that there will be no development charge on properties they take over, as that is what they want to be assured about?

I think the hon. Member is confusing two issues. Land in the possession of charities on 1st July may be exempted from development charge. New land they acquire should be purchased at existing use value and then there may be a development charge.