Jersey Introduces 'Fairer' Real Estate Planning Fees

by Jason Gorringe, Tax-News.com, London

03 May 2011

In an effort to deliver a fairer planning fee structure for residential applications, the Jersey government has announced that the method of calculating fees has changed from the beginning of May 2011.

The existing fee structure charged the same fee for a small home as a large one. Under the new structure, fees will be calculated on the floor area of the proposed development. Where a development is for more than one home it will be assumed that it is a commercial development, for profit, and therefore a higher fee based on floor area will be charged.

Smaller extensions to residential properties will also see a reduction in planning fees as the new fee structure will relate to extensions to dwellings as well as new homes.

The Minister for Planning and Environment, Freddie Cohen, said that: “I wish to see fees for residential applications move to a more equitable basis. Fees will now be charged based on the size of the application and therefore an islander applying for a small house or small extension will pay significantly less than previously. Conversely a commercial developer making an application for a multi home scheme will pay more”.

Commercial developer-led multi home schemes will be charged at GBP8.50 (USD14.18) per square metre, whilst single dwelling schemes will only be charged GBP4.50 per square metre.

All other Department of the Environment fees have been adjusted in line with inflation at 2.5%.

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