Statute Details
- Title: Land Betterment Charge (Concessionary Relief — Golden Mile Complex) Order 2024
- Act/Instrument Type: Subsidiary legislation (SL)
- Act Code: LBCA2021-S547-2024
- Authorising Act: Land Betterment Charge Act 2021 (section 13(1))
- Enacting Authority: Minister for National Development (after consulting the Minister for Law)
- Commencement: 1 July 2024
- Primary Purpose: Provides concessionary relief from land betterment charge for certain conservation-permission-related development within a specified area associated with the Golden Mile Complex
- Key Provisions:
- Section 1: Citation and commencement
- Section 2: Definitions (floor area, specified area, specified rate, Use Group)
- Section 3: Concessionary relief (cap and formula; scope and exclusions)
- Section 4: Withdrawal of concession (trigger events)
- Section 5: Effect of withdrawal (disregard for pre-chargeable valuation)
- Schedules:
- First Schedule: Map delineating the “specified area”
- Second Schedule: Use Groups and specified rates
What Is This Legislation About?
The Land Betterment Charge (Concessionary Relief — Golden Mile Complex) Order 2024 (“the Order”) is a targeted tax-relief instrument under Singapore’s Land Betterment Charge framework. In broad terms, the Land Betterment Charge (LBC) system is designed to capture a portion of the economic uplift in land value that results from certain government actions or planning changes. However, the law also allows the Government to grant “concessionary relief” in appropriate cases.
This particular Order grants a concession from the land betterment charge for certain development authorised by a conservation permission relating to land within a defined “specified area” connected to the Golden Mile Complex. The policy objective is to support conservation-led development—i.e., development that is tied to conserving buildings—by reducing or eliminating the LBC payable for parts of the authorised development that fall within defined categories.
Practically, the Order does not create a general exemption from LBC for all development in the area. Instead, it provides relief only where (i) the chargeable consent is a conservation permission granted for land within the specified area, and (ii) the development authorised by that conservation permission meets the Order’s conditions. The concession is also subject to a monetary cap and a specific calculation method tied to “Use Groups” and floor area.
What Are the Key Provisions?
1. Commencement and definitions (Sections 1 and 2)
Section 1 confirms that the Order is the “Land Betterment Charge (Concessionary Relief — Golden Mile Complex) Order 2024” and that it comes into operation on 1 July 2024. This matters for practitioners because LBC liability and concession eligibility typically depend on the timing of the relevant consents and the valuation framework applied by the LBC regime.
Section 2 sets out key terms used throughout the Order. Of particular importance are: (a) “floor area”, which adopts the meaning in the Planning (Development) Rules 2008; (b) “specified area”, which is defined by a map in the First Schedule; and (c) “specified rate” and “Use Group”, both drawn from the Second Schedule. These definitions are essential because the concession calculation in Section 3 depends on the Use Group classification and the corresponding specified rate.
2. The concession: when LBC is “not payable” (Section 3)
Section 3 is the core operative provision. Under Section 3(1), land betterment charge is not payable (to the extent specified) for a chargeable consent that is: (a) a conservation permission granted in relation to land within the specified area; and (b) one that entitles the person to carry out development within the specified area.
This is a conditional relief. It is triggered by the nature of the consent (conservation permission) and by the location (within the specified area). The Order therefore requires careful factual and documentary alignment: the consent must be a conservation permission, and the development must be within the delineated area.
3. The concession cap and calculation method (Section 3(2) and (3))
Even where the conditions in Section 3(1) are met, the concession is not unlimited. Section 3(2) provides that the amount of LBC not payable due to the concession must not exceed the lower of:
- $70,000,000; or
- an aggregate amount calculated for each part of the development authorised by the conservation permission that is to be used exclusively for a purpose falling within a specified Use Group.
The aggregate amount is worked out using a formula in Section 3(3). The formula uses: A (floor area of that part), 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 a specific land lot, TS15-00359T, as of 6 May 2022).
For practitioners, the significance is twofold. First, the concession is computed by reference to exclusive use within Use Groups, meaning mixed-use or non-exclusive arrangements may require careful apportionment. Second, the tenure percentage is anchored to a specific land lot and a specific reference date, which suggests the concession is calibrated to the tenure profile of the relevant land parcel(s) within the Golden Mile Complex context.
4. Inclusion and exclusion of “conservation” floor area (Section 3(4) and (5))
Section 3(4) clarifies that a reference to floor area of the development includes 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). However, Section 3(5) then states that the concession in Section 3(1) 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 interpretive point. While the definition of “floor area” for calculation purposes may include conservation-related floor area, the concession is expressly withheld for the conservation component itself. In other words, the concession is intended to apply to development authorised by the conservation permission, but not to the portion that is specifically for conserving the buildings. This structure reflects a policy compromise: conservation is supported, but the LBC relief is targeted to particular development uses rather than to the conservation act per se.
5. Interaction with earlier concession orders (Section 3(6))
Section 3(6) provides a “to avoid doubt” clause stating that the Order does not affect paragraph 3 of the Land Betterment Charge (Concessionary Relief) Order 2022 (G.N. No. S 570/2022). This indicates legislative continuity and prevents unintended overlap or modification of relief granted under the 2022 Order. Practitioners should therefore review the 2022 concession regime to understand whether any parallel relief applies and how the two instruments coexist.
6. Withdrawal of concession (Section 4)
Section 4 sets out when a concession under Section 3(1) ends and is withdrawn. The concession is withdrawn if any of the following occurs:
- (a) the development is not carried out in accordance with the conservation permission granted for it;
- (b) the development authorised by the conservation permission is not completed within the validity period (including any extension) of that conservation permission; 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 period of the second permission.
These triggers are important for compliance and risk management. They effectively convert the concession into a conditional benefit dependent on faithful implementation and timely completion. The inclusion of scenario (c) is particularly noteworthy: it addresses the possibility of subsequent permissions that change the conservation approach. If the later permission is inconsistent with the conservation of the buildings and the development proceeds under it, the original concession is withdrawn.
7. Effect of withdrawal (Section 5)
Upon withdrawal, Section 5 provides that the development of land for which the concession was granted must be disregarded for the purpose of determining the pre-chargeable valuation of the land.
This is a technical but crucial consequence. The “pre-chargeable valuation” is part of the LBC valuation methodology. Disregarding the development for that purpose suggests that the valuation uplift attributable to the concession-related development will not be treated as having occurred (or will be recalculated as if the concession-related development were not relevant). Practitioners should anticipate that withdrawal may lead to recalculation of LBC liability and potential arrears or adjustments, depending on how the LBC authority applies the valuation framework.
How Is This Legislation Structured?
The Order is structured as a short, five-section instrument with two schedules.
Sections 1–2 deal with citation/commencement and definitions. Section 3 contains the substantive concessionary relief, including the cap and formula, as well as the carve-out for conservation components. Section 4 provides the circumstances for withdrawal. Section 5 sets out the valuation effect of withdrawal.
The First Schedule is a map delineating the “specified area”. The Second Schedule provides the administrative data needed for the calculation: the Use Groups and the corresponding specified rates. Together, the schedules operationalise the formula in Section 3.
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 delineated in the First Schedule. It is therefore relevant to developers, landowners, and conservation-permission applicants whose projects fall within the Golden Mile Complex specified area and who seek to benefit from LBC concessionary relief.
Eligibility is not automatic. The concession is tied to the nature of the consent (conservation permission), the location (specified area), and the development’s use (exclusive use within defined Use Groups for the calculation). Additionally, the concession can be withdrawn if the development is not carried out as authorised, not completed within the validity period, or if subsequent inconsistent conservation permissions are obtained and acted upon.
Why Is This Legislation Important?
This Order is important because it provides a large, targeted financial relief mechanism within a specific conservation context. The maximum concession is capped at $70,000,000, indicating that the Government expects substantial development value and seeks to manage the fiscal impact while still incentivising certain outcomes.
For practitioners, the Order’s practical value lies in its precision: it specifies the exact consent type, the geographic scope, the calculation inputs (floor area, Use Group rates, and a tenure-based percentage), and the compliance conditions that can trigger withdrawal. In conservation-led redevelopment projects, these details can materially affect project feasibility, pro forma costs, and the structuring of development components to align with Use Group categories.
Finally, the withdrawal and valuation effect provisions mean that concession planning must be paired with implementation discipline. If the development deviates from the conservation permission or is not completed within the validity period, the concession can be withdrawn and the valuation recalculated by disregarding the concession-related development for pre-chargeable valuation purposes. This creates a legal and financial incentive to manage approvals, extensions, and construction delivery tightly.
Related Legislation
- Land Betterment Charge Act 2021 (authorising provision: section 13(1))
- Land Betterment Charge (Concessionary Relief) Order 2022 (G.N. No. S 570/2022), including paragraph 3 (not affected by this Order)
- Land Betterment Charge (Table of Rates and Valuation Method) Regulations 2022 (G.N. No. S 569/2022), including the Seventh Schedule percentages
- 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.