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Section 106 TCPA meaning

What does Section 106 TCPA mean?
In practice, “Section 106 TCPA” refers to planning obligations used by local planning authorities to make a proposed development acceptable in planning terms (for example, securing affordable housing, highways works, on‑site mitigation or financial contributions). Defined in section 106 of the Town and Country Planning Act 1990 (as amended), it enables an authority and persons with an interest in land to enter into a deed—either a bilateral agreement or a unilateral undertaking—that restricts or regulates the development or use of land, or requires payments. Key features include: obligations run with the land, bind successors in title, are recorded as a local land charge, and are enforceable by the authority (including by injunction or recovery of sums). Modification or discharge is governed by section 106A, with a right of appeal if refused. Section 106 obligations operate alongside, and are distinct from, the Community Infrastructure Levy. Obligations must satisfy the Community Infrastructure Levy Regulations 2010, regulation 122 tests: necessary to make the development acceptable, directly related to the development, and fairly and reasonably related in scale and kind. Jurisdictional note: the “section 106” mechanism applies in England and Wales. Analogous regimes exist elsewhere—Scotland: section 75 agreements (Town and Country Planning (Scotland) Act 1997); Northern...
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View the related Checklists about Section 106 TCPA

CHECKLISTS
Section 106 Agreements under TCPA 1990: Practitioner Checklist on Drafting, Parties, Conditions, Contributions, Enforceability and Execution (England and Wales)

This Checklist offers a concise overview of the main statutory and practical issues in drafting and negotiating planning obligations under section 106 of the Town and Country Planning Act 1990 (TCPA 1990), more commonly known as section 106 agreements. For more detailed guidance on: the principal statutory requirements for planning obligations—covering formalities, relevant parties, registration formalities, when obligations become effective, and dispute resolution processes—see Practice Note: Planning obligations—key points how to prepare a section 106 agreement in line with statutory criteria while achieving practical efficiency—see Practice Note: Drafting section 106 agreements—practical advice for developers how to renegotiate a section 106 agreement—see Practice Note: Renegotiating planning obligations/section 106 agreements Have the statutory requirements been fulfilled? If the requirements of TCPA 1990, s 106 are not met, the obligations set out in the agreement may not constitute a 'planning obligation', with the result that the local planning authority (LPA) might be unable to enforce those obligations against successors in title to the...

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FLOWCHARTS
Section 106 (TCPA 1990) Planning Obligations in England and Wales: Preparation, Completion, Responsibilities and Timeline—Flowchart

This Flowchart This Flowchart explains the route by which appropriate consent under the Proceeds of Crime Act 2002, s 335 is approved or refused, and clearly sets out precisely what you must do—or avoid doing—at each point in the procedure...

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View the related News about Section 106 TCPA

NEWS
Property law weekly update: legislation, case law and policy across England, Wales and Scotland, including renters’ rights, leasehold reform, building safety, service charges, easements, planning and taxes

In this issue: Key developments and horizon scanning Residential property Property management Statutory compliance Easements, rights and covenants Property development Commercial real estate finance Property taxes Property in Scotland Additional property updates this week Daily and weekly news alerts New and updated content Trackers Key developments and horizon scanning Explanatory notes and guidance on Renters' Rights Act 2025 The Ministry of Housing, Communities and Local Government has issued Explanatory Notes for the Renters’ Rights Act 2025 (RRA 2025). These explain how the RRA 2025 will work in practice, setting out each provision’s effect, the context to legal rules being revised or replaced, and the intended use of new regulatory powers, with practical examples showing how tenancy, possession, rent, enforcement and discrimination measures will operate once commenced. See: LNB News 25/02/2026 20. Source: Explanatory Notes to the Renters’ Rights Act 2025. The British Property Federation (BPF) has also published guidance...

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View the related Practice Notes about Section 106 TCPA

PRACTICE NOTES
England: Proposed Infrastructure Levy replacing CIL/section 106—framework and operation under LURA 2023 (not implemented) [Archived]

ARCHIVED: This Practice Note has been archived and is no longer maintained. In a July 2024 consultation on revisions to national planning policy, the government stated it would not take forward the infrastructure levy. Consequently, this Practice Note is archived and is not being updated. What is the infrastructure levy? The infrastructure levy (IL) was designed to reshape the system of developer contributions in England, replacing contributions made via planning obligations under section 106 of the Town and Country Planning Act 1990 (TCPA 1990) and the community infrastructure levy (CIL) with a compulsory, more straightforward, locally set charge on new development. The detailed operation of IL would be prescribed through regulations. The objective of IL is to ensure that the costs of supporting an area’s development are met, at least in part, by landowners or developers, without rendering development in that area economically unviable. Part 4 and Schedule 12 to the Levelling-up and Regeneration Act 2023 (LURA 2023) establish the overarching framework for IL. LURA 2023 received...

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PRACTICE NOTES
Enforcing and Challenging Section 106 Planning Obligations: Parties and Successors, Remedies (Injunctions, Works in Default, Debt Recovery), Defences, Repayment of Unspent Contributions, and Limitation Issues (England and Wales)

Where a developer, for whatever reason, does not fulfil its duties under an agreement made or binding on it pursuant to section 106 of the Town and Country Planning Act 1990 (TCPA 1990) (a planning obligation/section 106 agreement), the relevant local planning authority (LPA) may take steps to secure performance of the obligations contained in the section 106 agreement and to ensure compliance with its terms and requirements. On recognising that it cannot meet an obligation in a section 106 agreement, the developer should promptly engage with the LPA and seek to discharge or vary the obligation. For instance, it could propose a reduced or otherwise amended contribution, or negotiate a later trigger date for payment, delivery or compliance. See Practice Note: Renegotiating planning obligations/section 106 agreements. If that is not achievable, and the developer fails to comply with an obligation in a section 106 agreement, the LPA has discretion in deciding whether, and how, to enforce a planning obligation. The courts show a general readiness to enforce section 106...

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PRACTICE NOTES
Section 106 planning obligations and CIL: Regulation 122 tests, Regulation 123 restrictions and their 2019 abolition in England - case law and practice (England and Wales)

Planning gain or betterment taxation Planning gain, often called betterment taxation, has been a fixture of England’s planning regime for many years. The principle is that developers should help meet the costs arising from the effects of their schemes, and/or pay a levy on part of the uplift in land value created by securing planning permission, to finance infrastructure needed locally by the development. Numerous efforts to implement betterment taxation have been tried over time. The most durable and effective mechanism is the agreement made under section 106 of the Town and Country Planning Act 1990 (TCPA 1990), commonly known as a section 106 agreement or planning obligation. Section 106 of the TCPA 1990 permits local planning authorities (LPAs) to obtain both monetary and in-kind contributions from developers when issuing planning consent, so that a proposal is acceptable in planning terms. As section 106 obligations are settled case by case between the LPA and the developer or landowner, they deliver mitigation tailored to the site and tackle local...

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PRECEDENTS
Deed of Planning Obligation under Section 106 TCPA 1990 (England): Precedent covering financial contributions, section 278 Highways Act 1980 works, open space, affordable housing, public art and biodiversity net gain

This Agreement is entered into on [ insert date ] of [ insert month ] [ insert year ] by and between: [ insert name ], of [ insert address ] (' Council '); [ insert name ], of [ insert address ] (' County Council '); [ insert name ], a company duly incorporated and registered in [ insert details ] under number [ insert details ], whose registered office is at [ insert address ] (' Developer '); [ Additional parties as necessary eg owner, landlord, mortgagee, option holder etc. ] (' [ insert additional parties as necessary eg owner, landlord, mortgagee, option holder etc ] '). Recitals The Council is the local planning authority for the purposes of section 106 of the 1990 Act for the area within which the Land is situated and is the body by whom the obligations contained in this Deed are enforceable. The County Council is the local highway...

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PRECEDENTS
Precedent Land Promotion Agreement: Planning Permission, Section 106/CIL, Biodiversity Gain, Sale of Whole/Part and Proceeds Sharing (England and Wales)

Date [ date ] Parties [ name of (first) Owner ] [ and [ name of second Owner ] ] [ [ both ] of OR incorporated in England and Wales (company registration number [ number ]) having its registered office at ] [ address ] ( [ together ] Owner ) [ name of Promoter ] [ of OR incorporated in England and Wales (company registration number [ number ]) having its registered office at ] [ address ] ( Promoter ) 1 Definitions In this Agreement, the following expressions shall have these meanings: [ Adverse Rights • any easement, covenant, right or other interest in or over the Property, the release, discharge or alteration of which is reasonably required in order to: (a) achieve the Objective; or (b) facilitate the Development; ] [ Adverse Rights Agreement • any instrument giving legal effect to the release, discharge or alteration of an Adverse Right; ] ...

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Q&As
Electronic execution of s.106 TCPA 1990 agreements: Coronavirus Act 2020

Section 106 agreements (section 106 of the Town and Country Planning Act 1990 (TCPA 1990)) These provisions enable any person with an interest in land to, ‘by agreement or otherwise’, enter into obligations under TCPA 1990, s 106(1)(a) to (d), which may: limit or control the development or use of the land require that specified operations or works are carried out stipulate that the land is used in a particular way require payment of a sum or sums to the authority As s 106 allows obligations to be given ‘by agreement or otherwise’, they may equally be created by a unilateral undertaking, rather than solely through an agreement. This note considers both mechanisms and their effect in practice. For either an agreement or a unilateral undertaking to bind all interests in the land, everyone holding an interest must be joined as a party to the agreement, or must join in the unilateral undertaking, as appropriate. In either event, the local...

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Q&As
Are s106 TCPA contributions caught by State aid rules or exempt?

State Aid: The Basics Guide The Department for Business, Innovation & Skills’ July 2015 guide, State Aid: The Basics Guide, explains that state aid arises wherever public resources are used to give organisations an edge over others, potentially distorting competition and harming consumers and businesses across the EU. The concept is deliberately wide, as an “advantage” can be delivered in many ways, for example: grants loans tax breaks the use or sale of a state asset free of charge or for less than market value Public authorities, including local authorities in England and Wales, are accountable for ensuring their policies and projects comply with these requirements. During the implementation period following Brexit, state aid rules continue to apply in the UK. The annex to the Department for Education’s November 2019 publication, Securing Developer Contributions for Education, notes that unlawful state aid can occur in relation to developer contributions towards education...

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Q&As
Section 106 phased payment triggers: early full contribution?

Payment in instalments Section 106 of the Town and Country Planning Act 1990 (TCPA 1990) establishes a process enabling a developer to enter planning obligations with a local planning authority, intended to lessen the impacts arising from a proposed development...

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View the related UK Parliament Acts about Section 106 TCPA

UK PARLIAMENT ACTS
[106 Planning obligations]

[(1)     Any person interested in land in the area of a local planning authority may, by agreement or otherwise, enter into an obligation (referred to in this section and sections 106A [to 106C] [, sections 106A to 106C and Schedule 9A] as “a planning obligation”), enforceable to the extent mentioned in subsection (3)—(a)     restricting the development or use of the land in any specified way;(b)     requiring specified operations or activities to be carried out in, on, under or over the land;(c)     requiring the land to be used in any specified way; or(d)     requiring a sum or sums to be paid to the authority [(or, in a case where section 2E applies, to the Greater London Authority)] on a specified date or dates or periodically.[(1A)     In the case of a development consent obligation, the reference to development in subsection (1)(a) includes anything that constitutes development for the purposes of the Planning Act 2008.](2)     A planning obligation may—(a)     be unconditional or subject to conditions;(b)     impose any restriction or requirement mentioned in subsection...