The following Planning guidance note provides comprehensive and up to date legal information covering:
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.
Planning agreements made under section 106 of the Town and Country Planning Act 1990 (TCPA 1990), also known as planning obligations, are agreements between developers and local planning authorities (LPAs).
Planning obligations attach to a planning permission, to make acceptable development which would otherwise be unacceptable in planning terms. They may be used to:
restrict the development or use of land
require 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 LPA
Each provision of a planning obligation must fall within TCPA 1990, s 106(1)(a)–(d).
The deposit of a sum of money with the LPA under a planning obligation creates a form of trust. This includes an obligation to repay sums advanced by an LPA for a purpose which has not been fulfilled.
A planning obligation may:
be unconditional or subject to conditions
impose a restriction indefinitely or for such period as may be specified
require payment of a specified amount, an amount to be calculated in accordance with the planning obligation,
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