Land Remediation Relief Lobbying

The Fiscal Incentives Group is currently working with The Environmental Industries Commission and Home Builders Federation to lobby for a change to the existing Land Remediation Relief regime to provide better support for the Government’s initiatives announced in the Housing & Planning Bill to increase the amount of housing development on brownfield sites. The key proposals for a modified regime are:

  1. To bring the tax relief “above the line” through the introduction of a pre-tax credit for qualifying remediation costs to operate in a similar way to the Research & Development Expenditure Credit (RDEC). Cost to Treasury – Neutral
  2. To increase the value of the tax relief from 150% to 175%. This would have the effect of restoring the tax relief to the same level of cash contribution when the tax relief was first introduced when Corporation Tax rates were 30%. Cost to Treasury – £10m per annum
  3. For small sites of fewer than 25 units the relief would be further enhanced to 200% provided the development is completed within 24 months of planning permission being granted. This would again send a clear message of intent to deliver on the 90% target and more importantly to ensure the houses get built. Cost to the Treasury – £3m per annum.
  4. To reintroduce tax relief for flood prevention measures. This is a hugely topical issue and would send clear messages to the industry that proper flood prevention or mitigation measures should be incorporated into the development of new homes, also encouraging much needed R&D into mitigation technologies. Cost to the Treasury – £3m per annum
  5. To bring forward the date used to determine entitlement to Derelict Land Relief from 1998 to 2008.

If you have any comments or are able to support the lobbying efforts then please contact ben.dewaal@tfigroup.co.uk

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