Section 106 TCPA definition

View the related practice notes about Section 106 TCPA

Planning obligations—key points

This Practice Note should be read in conjunction with Practice Notes: The statutory test for section 106 agreements and interaction with Community Infrastructure Levy (CIL) and Drafting section 106 agreements—practical advice for developers.What can planning obligations do?Planning agreements made under section 106 of the Town and Country Planning Act 1990 (TCPA 1990), also known as planning obligations or s 106 agreements, are agreements between developers/landowners and local planning authorities (LPAs).Planning obligations attach to a planning permission, to make acceptable development which would otherwise be unacceptable in planning terms. TCPA 1990, s 106(1)(a)–(d) specifies that a planning obligation may be entered into between a person interested in land in the area of an LPA, and the LPA to:•restrict the development or use of land•require specified operations or activities be carried out in, on, under or over the land•require the land to be used in a specified way•require the payment of a sum or sums to the LPAEach provision of a planning obligation must fall within TCPA 1990, s 106(1)(a)–(d).The deposit of...

The statutory test for section 106 agreements and interaction with Community Infrastructure Levy (CIL)

The concept of planning gain or betterment taxation has long been an element of the planning system in England. It is based on the idea that developers should contribute towards the costs associated with the impacts of their development, and/or pay a tax on a proportion of the increase in land value derived from obtaining planning permission, to fund local infrastructure requirements related to the development.Various attempts to introduce betterment taxation have been made over the years. The most effective and long-standing is the use of agreements under section 106 of the Town and Country Planning Act 1990 (TCPA 1990), often referred to as ‘section 106 agreements’ or ‘planning obligations’. TCPA 1990, s 106 enables local planning authorities (LPAs) to seek both financial and in-kind contributions from developers when granting planning permission, to make a proposed development acceptable in planning terms. Because section 106 agreements are negotiated on a case-by-case basis between the LPA and the developer/landowner, they provide site-specific mitigation and address local impacts directly caused by the scale...

View the latest UK Parliament Acts documents on Section 106 TCPA

[106 Planning obligations]

[(1)     Any person interested in land in the area of a local planning authority may, by agreement or otherwise, enter into an obligation (referred to in this section and sections 106A [to 106C] [, sections 106A to 106C and Schedule 9A] as “a planning obligation”), enforceable to the extent mentioned in subsection (3)—(a)     restricting the development or use of the land in any specified way;(b)     requiring specified operations or activities to be carried out in, on, under or over the land;(c)     requiring the land to be used in any specified way; or(d)     requiring a sum or sums to be paid to the authority [(or, in a case where section 2E applies, to the Greater London Authority)] on a specified date or dates or periodically.[(1A)     In the case of a development consent obligation, the reference to development in subsection (1)(a) includes anything that constitutes development for the purposes of the Planning Act 2008.](2)     A planning obligation may—(a)     be unconditional or subject to conditions;(b)     impose any restriction or requirement mentioned in subsection...