RE:UK response to reforming land remediation relief

Overview

We have responded to HM Treasury’s consultation on reforming Land Remediation Relief (LRR). We support bringing forward relief so developers can claim for qualifying remediation costs when they are incurred. We also call for clearer guidance on which contaminated and derelict sites qualify. Reforming LRR would help encourage brownfield redevelopment, but wider action is needed to address development viability.

Our key asks

We recommend that the Government:

• Allows developers to claim relief for qualifying costs when they are incurred, giving them access to working capital as remediation progresses.
• Retains the existing definition of contaminated land for LRR purposes, rather than linking eligibility to planning conditions, which could create uncertainty and exclude qualifying work.
• Updates the definition of derelict land so sites that became derelict after 1998 can qualify, preferably using a rolling 10-year period, and allows interim use before redevelopment.
• Provides clear HMRC guidance and sensible transitional arrangements, including for projects already under way, so businesses can understand and use the reformed relief.
• Uses the forthcoming Budget to address wider development viability challenges, as improvements to LRR alone will have a limited impact on the delivery of brownfield sites.