Taxes Consolidation Act 1997 section 653AFA

Deferral of tax during application to retain unauthorised development or for substitute consent

Section 653AFA provides for a deferral of residential zoned land tax where a landowner applies for retrospective planning permission to retain an unauthorised development, or for substitute consent, pending the outcome of that application.

• Where land would otherwise qualify for exclusion from RZLT under section 653B(i) or (ii) but for an unauthorised development, the landowner may apply for retention permission or substitute consent and, while the application is pending, claim a deferral of the tax arising from the date of the application.
• If retention permission or substitute consent is granted, the land is treated as not being a relevant site from the date the application was made, and the liable person may claim a repayment of all RZLT paid from that date.
• If the application is unsuccessful, the liable person must amend each return in which a deferral was claimed and pay all tax and interest due; the same obligation arises if the land is sold before the application is determined.
• For Finance Act 2025 section 103 updates see commentary to section 653A.