21 March 2007

Tax incentives for development of brownfield land: a consultation

The Government is committed to a step change in housing supply. It has set out an ambition to increase housing supply by at least 240,000 net additional homes per year by 2016. At the same time it is committed to maintaining a high proportion of development on brownfield sites.

The Barker Review of housing supply in 2004 recommended that land remediation relief (a relief from corporation tax) should be extended to give help to long-term derelict sites. The Barker review of land use and planning (2006) recommended that the Government should consult on reform of land remediation relief to ensure that it brings forward new development on hard to remediate sites.

At Budget 2007 the Government published a consultation document entitled "Tax incentives for development of brownfield land". This consultation concerned the future form of the tax reliefs to assist with the decontamination of land and to encourage development of long-term derelict sites. The consultation discussed proposals for reform in five areas:

  • long-term derelict land;
  • improving the development focus of land remediation relief;
  • speed and certainty of land remediation relief;
  • Japanese Knotweed; and
  • the landfill tax exemption for waste from contaminated land.

The consultation closed on 14 June and fifty-two responses were received. A summary of responses to each of the questions asked within each of the five areas covered by the consultation document was published on 19 October 2007.

The Government was committed to publishing its response by the end of 2007. The Government's response was published on 14 December 2007. The Government will make a further announcement at Budget 2008.

The Government also reaffirms its commitment that the overall support for remediation of hard to remediate sites through the tax system should not be less after reform than it is at present.

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