Examines the recommendation (currently being considered by HM Treasury) in the Barker review of housing supply to introduce a planning gain supplement. The key problem with the proposals is that planning permission is only one stage of development and the tax would be payable when permission is granted rather than on the actual and eventual gain in value. Covers earlier attempts to tax development gains, the planning gain supplement, the taxation of planning gain using other taxes, and s106 and planning tariffs. Supports a tariff approach within the s106 framework or if a tax system is to be chosen, advocates a return to a system similar to development gains tax as enacted in the Finance Act 1974. Concludes that the planning gain supplement is an unworkable scheme.

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