Statute Details
- Title: Land Betterment Charge (Concessionary Relief — Golden Mile Complex) Order 2024
- Act Code: LBCA2021-S547-2024
- Type: Subsidiary Legislation (SL)
- Authorising Act: Land Betterment Charge Act 2021 (power under section 13(1))
- Commencement: 1 July 2024
- Enacting date: Made on 26 June 2024
- Legislative instrument number: SL 547/2024
- Key provisions: Sections 1–5; First Schedule (specified area); Second Schedule (specified rates and Use Groups)
- Concession mechanism: Land betterment charge not payable (subject to limits and conditions) for specified conservation permissions within the specified area
- Withdrawal mechanism: Concession ends if development is not carried out as permitted, not completed within validity, or superseded by inconsistent permissions
- Effect of withdrawal: Development is disregarded for determining pre-chargeable valuation
What Is This Legislation About?
The Land Betterment Charge (Concessionary Relief — Golden Mile Complex) Order 2024 (“the Order”) is a targeted subsidiary law made under the Land Betterment Charge Act 2021 (“LBCA 2021”). In plain terms, it creates a special, time-limited (and condition-dependent) relief from the land betterment charge for certain development activities connected to conservation permissions within a defined geographic area associated with the Golden Mile Complex.
Singapore’s land betterment charge regime generally aims to capture a portion of the economic value uplift that arises when land is made more valuable by planning decisions and other public actions. However, the policy rationale for conservation can differ: where conservation permissions protect heritage buildings, the government may choose to reduce or waive the charge to avoid disincentivising conservation and adaptive reuse.
This Order therefore carves out a concession: for qualifying “chargeable consent” that is a conservation permission granted for land within the specified area, the land betterment charge is not payable to a specified extent. Crucially, the concession is not automatic for all development. It is capped, calculated using floor area and a rate structure tied to “Use Group”, and it is withdrawn if the conservation project is not carried out as permitted or is overtaken by inconsistent permissions.
What Are the Key Provisions?
1. Citation and commencement (Section 1)
Section 1 provides the formal name of the Order and states that it comes into operation on 1 July 2024. For practitioners, this matters for determining whether a particular conservation permission or development stage falls within the concession’s effective period.
2. Definitions (Section 2)
Section 2 defines several terms that drive the concession’s scope and calculation:
- “floor area” is defined by reference to the Planning (Development) Rules 2008.
- “specified area” is the area delineated in the First Schedule (a map).
- “specified rate” is a rate in the Second Schedule.
- “Use Group” is a Use Group specified in the first column of the Second Schedule.
These definitions indicate that the concession is not merely conceptual; it is operationalized through scheduled rates and a mapping exercise.
3. Concessionary relief (Section 3)
Section 3 is the core provision. It provides that, subject to the conditions and limitations in the section, land betterment charge is not payable (to the extent specified) for a chargeable consent that:
- (a) is a conservation permission granted in relation to land within the specified area; and
- (b) entitles the person to carry out development within the specified area.
This means the concession is tied to the nature of the consent (conservation permission) and the location (within the specified area).
Cap on the amount of charge not payable (Section 3(2))
Even if the consent qualifies, the relief is capped. The amount of land betterment charge not payable must not exceed the lower of:
- (a) $70,000,000; or
- (b) an amount computed by reference to the development’s parts and their permitted exclusive use purposes falling within a Use Group.
This “lower of” structure is important for advising clients: the concession may be limited either by the overall monetary cap or by the formula-based cap, whichever is smaller.
Formula-based calculation (Section 3(3))
Where Section 3(2)(b) applies, the formula uses:
- A = floor area of the part of the development;
- B = the specified rate corresponding to the Use Group; and
- C = a percentage from the Seventh Schedule to the Land Betterment Charge (Table of Rates and Valuation Method) Regulations 2022, corresponding to the remaining tenure in whole years of land lot TS15-00359T as of 6 May 2022.
The inclusion of a specific land lot and a fixed reference date suggests the concession is designed around a particular landholding/tenure profile relevant to the Golden Mile Complex. For practitioners, this is a strong indicator that the concession is highly tailored and that tenure-related inputs should be verified carefully against the stated reference date.
Inclusion of conservation-related floor area (Section 3(4))
Section 3(4) clarifies that references to floor area in the formula include floor area of any part of the development that is for the conservation of one or more buildings within the specified area, mentioned in Section 3(5). This is a technical drafting point that affects the calculation base.
Important exclusion: no concession for the conservation part (Section 3(5))
Despite Section 3(4)’s inclusion clarification, Section 3(5) states that the concession does not apply to any part of the development that is for the conservation of one or more buildings within the specified area. This is a key tension in the drafting: the formula may include conservation floor area for calculation purposes, but the concession is expressly carved out for the conservation portion itself. Practically, this means the relief is intended to apply to development elements other than the conservation of the buildings, even though the conservation component may be relevant to how floor area is measured for the overall computation.
Relationship to earlier concession order (Section 3(6))
Section 3(6) provides that the Order does not affect paragraph 3 of the Land Betterment Charge (Concessionary Relief) Order 2022 (SL 570/2022). This indicates the existence of a prior concession framework and confirms that this 2024 Order should be read alongside (and not to override) the 2022 provision for the relevant subject matter.
4. Withdrawal of concession (Section 4)
Section 4 sets out when the concession ends. A concession under Section 3(1) is withdrawn if any of the following occurs:
- (a) the development is not carried out in accordance with the conservation permission granted;
- (b) the development is not completed within the validity period of the conservation permission (including any extension); or
- (c) another conservation permission is granted to develop the same land within the specified area in a manner inconsistent with the conservation of the buildings on the land, and the development is carried out within the validity of the second permission.
This provision is critical for risk management. It ties the concession to compliance and timing, and it also addresses a scenario where the project is re-permitted in a way that undermines the conservation intent.
5. Effect of withdrawal (Section 5)
Upon withdrawal, the development for which the concession was granted must be disregarded for determining the pre-chargeable valuation of the land. In the LBCA 2021 framework, valuation is central to how the charge is computed. Disregarding the development for pre-chargeable valuation suggests that the concession’s benefit is effectively reversed in the valuation baseline, potentially increasing the charge exposure.
How Is This Legislation Structured?
The Order is structured in a conventional legislative format for subsidiary legislation under the LBCA 2021:
- Sections 1–2 deal with citation/commencement and definitions.
- Section 3 creates the concessionary relief, including the cap and the formula-based calculation using scheduled “specified rates” and “Use Groups”, and it contains important exclusions and interpretive clarifications.
- Section 4 provides the withdrawal triggers.
- Section 5 explains the valuation consequence of withdrawal.
- First Schedule identifies the specified area via a map.
- Second Schedule sets out the specified rates and the Use Groups used in the calculation.
For practitioners, the schedules are not optional reading: they supply the numeric inputs and classification framework that determine the concession’s extent.
Who Does This Legislation Apply To?
The Order applies to persons who hold or are entitled to a chargeable consent that is a conservation permission granted in relation to land within the specified area (as defined by the First Schedule) and that authorises development within that area.
While the Order is framed generally, its formula references a particular land lot (TS15-00359T) and a fixed date (6 May 2022) for tenure-related percentage inputs. This indicates that the concession is intended for a specific conservation/development context—practically, the Golden Mile Complex—rather than being a broad, reusable relief for all conservation projects.
Why Is This Legislation Important?
This Order is significant because it operationalises a policy compromise between two objectives: (1) preserving heritage buildings through conservation permissions, and (2) maintaining the integrity of the land betterment charge system. By granting a capped concession, the government reduces the financial burden that could otherwise deter conservation-linked redevelopment.
For legal practitioners advising landowners, developers, or conservation consultants, the most important practical implications are:
- Eligibility is consent- and location-specific: the concession depends on the consent being a conservation permission and the land being within the specified area.
- Relief is capped and formula-driven: the amount not payable is limited by the lower of a fixed monetary cap and a scheduled formula using floor area, Use Group rates, and tenure percentages.
- Conservation parts are excluded: the concession does not apply to the portion of development for conservation of the buildings, even though conservation floor area may be relevant to the calculation mechanics.
- Compliance and timing matter: the concession can be withdrawn if the development deviates from the conservation permission or is not completed within validity (including extensions).
- Valuation consequences follow withdrawal: withdrawal triggers a “disregard” effect on pre-chargeable valuation, which can materially affect the eventual land betterment charge assessment.
In short, the Order creates meaningful financial relief but only where the conservation project is executed as approved and within the permitted timeline. Advisers should therefore align development plans, consent conditions, and project schedules with the Order’s withdrawal triggers to preserve the concession.
Related Legislation
- Land Betterment Charge Act 2021 (authorising legislation; relevant provisions include section 13)
- Land Betterment Charge (Concessionary Relief) Order 2022 (G.N. No. S 570/2022), particularly paragraph 3
- Land Betterment Charge (Table of Rates and Valuation Method) Regulations 2022 (G.N. No. S 569/2022), including the Seventh Schedule
- Planning (Development) Rules 2008 (G.N. No. S 113/2008) for the definition of “floor area”
Source Documents
This article provides an overview of the Land Betterment Charge (Concessionary Relief — Golden Mile Complex) Order 2024 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.