Land Value Sharing – Update to General Scheme

Land Value Sharing – Update to General Scheme

On 14 April 2023, the Department of Housing, Local Government and Heritage published an update to the General Scheme for the Planning and Development (Land Value Sharing and Urban Development Zones) Bill (“the General Scheme”).  The General Scheme of the Bill proposed significant new proposals which affect developers and also strategic development by the state in Urban Development Zones.

The General Scheme was published originally in December 2021 and has now had input from the Office of the Attorney General, the Valuation Office and other third party stakeholders.

Some of the key elements of the General Scheme are outlined below:


  • New concept of an LVS contribution being made by a developer to a local authority where there is an uplift in value of lands as a result of local authority rezoning.
  • The LVS proposed to be calculated as 30% of the uplift in value from pre to post zoning.  The recent update has changed the methodology of calculating the uplift.
  • The revised scheme now proposes that the uplift applies not just to residential and mixed use lands but also to lands zoned commercial or industrial or designated as an urban development zone or strategic development zone.
  • LVS would be a payment made as a condition to a final grant of planning permission. This is in addition to financial contributions and levies which arise under the final grant of permission.
  • It applies to zoned land regardless of when that land was rezoned. Therefore, developers holding existing land banks (which were rezoned in the past) need to factor in an LVS of 30% uplift in value.
  • The LVS is refreshed each time the local area plan or county development plan is updated. It is important to note that the LVS only falls due for payment in conjunction with a grant of planning permission to develop the lands so it is difficult to see how the proposed legislation will in fact stimulate supply.

Key Dates

  • In scope lands acquired on or after 21 December 2021 (other than commercial or industrial) – LVS to take effect on planning applications lodged on or after 1 December 2024.
  • In scope lands acquired before 21 December 2021 (other than commercial or industrial) – LVS to take effect on planning applications lodged on or after 1 December 2025.
  • In respect of an application for planning permission on all other land i.e. including commercial and industrial – LVS to have effect from 1 December 2026.

LVS is only triggered once planning permission has been granted by a planning authority and it appears that this will include where An Bórd Pleanála grants a planning permission following an appeal, which is important given the significant delays to date with developments under appeal.

The General Scheme contains anti avoidance measures which require a statutory declaration from a developer in order to avail of exemptions from LVS.  Providing an incorrect or false declaration is liable to a fine of €50,000.

The monies raised through the LVS will be ringfenced for public infrastructure projects and related measures but it appears that the local authority has discretion to spend the LVS where it sees fit and not necessarily within the vicinity of the site on which the LVS is paid.


The General Scheme proposes designating certain lands as UDZs which ensure that land which is not being utilised is made available for development. Once designated as a UDZ, the lands:-

  • cannot be rezoned
  • may be compulsorily acquired
  • must be subject to a planning framework and deliver scheme within one year of designation

A planning authority or development agency may compulsorily acquire any land within a UDZ. A prerequisite for compulsory acquisition is that the opinion must be held that the acquisition is required by public infrastructure facilities and related measures in accordance with the relevant planning framework.  Any person with an estate or interest or right in compulsorily acquired lands immediately before a vesting order is made, may apply to the planning authority or development agency no later than 12 months after the making of the vesting order for compensation.


The text of the proposed bill on foot of the General Scheme is awaited. It is anticipated that if LVS is enacted that this will provide significant revenue for local authorities but this is on the assumption that the LVS measures will stimulate supply which remains to be seen.

The LVS will be payable in addition to planning contributions and also residential zoned land tax all of which have the combined effect of raising the costs of development even further.

Given the possibility of the proposed legislation creating further distortion in the planning system, it is likely that the bill will be subject to significant further debate and scrutiny.

For further information on this or any other property topic, please contact Roisin Bennett at

Roisin Bennett
Author: Roisin Bennett