Issue 1 – January 2008

Development of Brownfield Sites: Changes to Tax Incentives

Finally on issues arising out of the 2007 prebudget report, the Treasury announced a review of the tax incentives available to developers for the redevelopment of long term derelict and brownfield sites.

Its proposals were issued between Christmas and the New Year and are:

• To extend the existing tax relief for contaminated land to include the cost of clearing brownfield sites of previous foundations, reinforced piling and redundant services, and the eradication of Japanese knotweed infestation
• To withdraw the current exemption from Landfill Tax for waste removed from contaminated land.

Particular points to note are that there will be a time lag between expenditure on clearance costs and receipt of tax relief and that certificates for exemption from Landfill Tax will expire by 31 March 2010 at the latest and must have been applied for by 30 November 2008. Further details are expected in the 2008 Budget, so watch this space for an update…

For further information contact belinda.bridgen@mishcon.com