Itemised Statutory Allowable Deductions Checklist
Under standard RICS model clauses, development costs fall into six deductible categories:
• Local Authority Fees: Council planning application fees, pre-application consultation charges, and appeal submission fees.
• Infrastructure Taxes: Community Infrastructure Levy (CIL), Section 106 commuted sums, Section 278 highway agreements, and utility requisition costs.
• Design & Technical Consultancies: Architectural masterplanning, arboricultural tree reports, transport statements, flood risk assessments, and heritage statements.
• Physical Remediation & Abnormals: Asbestos removal, ground compaction, acoustic fencing, archaeological digs, and contaminated soil disposal.
• Legal & Professional Charges: Valuation survey fees, planning counsel opinions, and conveyancing legal costs.
| Financial Element | Unfavourable Gross Deed (No Deductions) | Balanced Net Deed (Allowable Deductions) |
|---|---|---|
| Gross Enhanced Value | £1,500,000 | £1,500,000 |
| Base Threshold Value | -£300,000 | -£300,000 |
| Gross Value Uplift | £1,200,000 | £1,200,000 |
| Planning & Architecture Fees | £0 (Not deductible) | -£45,000 |
| CIL & Section 106 Levies | £0 (Not deductible) | -£165,000 |
| Ground Remediation & Ecology | £0 (Not deductible) | -£90,000 |
| Net Chargeable Uplift | £1,200,000 | £900,000 |
| Clawback Payable (30%) | £360,000 | £270,000 (£90,000 saved) |