ABGi response to Land Remediation Relief consultation

ABGi welcomes the opportunity to respond to this consultation. We support the Government’s conclusion that, while Land Remediation Relief (LRR) provides meaningful support in some cases, it does not consistently influence development decisions.

We therefore welcome the proposed reforms and believe they represent an important opportunity to modernise the relief and improve its effectiveness in supporting brownfield regeneration.

Aligning LRR with Planning Processes

We strongly support aligning LRR with existing planning and environmental processes.

The current tax-specific definitions duplicate work already undertaken during planning and remediation, creating unnecessary complexity and additional costs. Using Local Authority remediation requirements as the basis for eligibility should simplify claims, reduce administrative burdens and improve accessibility, particularly for SMEs.

To ensure consistency across the UK, HMRC should publish clear national guidance while retaining appropriate audit rights to verify claims where necessary.

Reforming the Derelict Land Rules

We strongly support removing the requirement for land to have been continuously derelict since 1 April 1998.

The current rule has become increasingly arbitrary and excludes many genuinely derelict sites. Replacing it with a modern definition would better reflect today’s development market and support regeneration.

Any revised definition should rely as far as possible on objective evidence, such as planning documentation, structural surveys and environmental reports, providing certainty for developers while protecting against abuse.

Accelerating the Timing of Relief

We also strongly support allowing developers to claim qualifying expenditure when remediation costs are incurred rather than when completed properties are sold.

Earlier access to relief would improve cash flow at the point investment decisions are made, increasing the commercial relevance of LRR without increasing the overall amount of relief available.

Further Recommendations

Alongside the proposed reforms, we encourage the Government to:

• review whether the current scope of qualifying remediation activities reflects modern development practices;
• publish clearer guidance, worked examples and standard claim documentation to improve accessibility; and
• introduce appropriate transitional arrangements for projects already underway.

We also encourage consideration of a voluntary Advance Eligibility Assurance process, enabling developers to obtain an early indication that planned remediation is likely to qualify. This would improve certainty, support investment decisions and help ensure LRR influences projects before development begins.

Mark Law, Commercial Development Manager at ABGi UK comments:

“Every brownfield development presents its own technical and commercial challenges, but developers consistently tell us they need greater certainty, simpler rules and earlier access to support. These proposals have the potential to transform Land Remediation Relief into a more practical and effective incentive for regeneration, helping unlock sites that might otherwise remain undeveloped while maintaining the integrity of the tax system.”