On 18 September 2026, ICAEW submitted its response to the government’s call for evidence on reforming Land Remediation Relief (LRR). While welcoming the intention to modernise the relief, ICAEW argued that the current design fails to adequately incentivise brownfield development. The Tax Faculty put forward three alternative reform options: enhancing the relief rate for qualifying expenditure, expanding the definition of contaminated land, and introducing a transferable tax credit mechanism for loss-making developers.
Key Takeaways
- Enhanced Relief Rate: Increasing the current 150% corporation tax deduction to 200% would better reflect the high costs and risks of remediation projects.
- Broader Contamination Definition: Aligning the tax definition with environmental regulatory standards would capture more sites and reduce qualification uncertainty.
- Transferable Tax Credits: Allowing loss-making companies to surrender losses for a payable credit would make the relief accessible to special purpose vehicles and joint ventures common in development.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement