It’s not every day a tax relief scheme gets a second chance at life, but in 2025, Land Remediation Relief (LRR) is getting just that.
For those unfamiliar: LRR allows developers to claim 150% of the costs incurred when cleaning up contaminated or derelict land. It’s one of the few incentives in the UK tax system aimed squarely at sustainable development, yet it’s flown largely under the radar — and some would argue, underwhelmed in practice.
Now, the UK government has launched a review of the relief — not to scrap it (as once suggested), but to ask a better question: What could this relief look like if it actually worked for today’s challenges?
Why Review?
Land Remediation Relief has been on shaky ground for years, with the Office of Tax Simplification previously recommending it be axed, but policymakers have paused on the red pen. The rationale? Brownfield development is hard enough as it is. And in a world where we need to reuse land, not just use more of it, incentives matter.
This year’s review is less about ticking a box and more about reassessing whether LRR can still deliver on its original promise — encouraging redevelopment, unlocking tough sites, and making projects stack up financially and environmentally.
Who’s Being Asked?
The government is consulting developers, landowners, tax advisors, and the many voices in the ecosystem who’ve had to navigate LRR in its current form. If you’ve ever tried to claim it, or advised someone who has, you’ll know there’s room for improvement — and now’s the time to weigh in.
The government will soon be undertaking a review of the Land Remediation Tax Relief Scheme. Find out why, how it might affect you, and how you can have your voice heard in the consultation.
What Could Change?
Here are some of the reform ideas being floated:
• A boost in relief rate — proposals include bumping it up to 175%, or even 200% for larger or faster-completed developments.
• Turning LRR into an ‘above-the-line’ tax credit, giving it the same upfront visibility and appeal as RDEC.
• Modernising the derelict land rules, including revisiting the awkward 1 April 1998 vacancy cut-off that limits eligibility in ways that now seem arbitrary.
• Expanding the definition of contamination, potentially including problematic materials like RAAC (reinforced autoclaved aerated concrete).
• Introducing standardised claim templates to simplify reporting and reduce HMRC pushback.
All of this points to a recognition that, if we’re serious about regenerating land, especially in a housing and climate crisis, we need tax policy that’s fit for purpose. And the Land Remediation Tax Relief scheme, as it stands, has been doing the job with one arm tied behind its back.
Why It Matters
If you’re working with brownfield land, whether you’re improving it for building, advising on it, or taking contracts for remediation, the future shape of LRR could materially impact your projects. It’s not just about tax planning. It’s about financial viability. It’s about regeneration. And it’s about whether we’re really prepared to back up sustainability goals with fiscal action.
We often talk about the role of tax relief in driving behaviours. This is one of those moments where the government seems open to rethinking not just the mechanism but the mission.
The consultation should be live soon, and the government has already put into discussion a review of Land Use in England, which may be intended to develop the structure of the LRR conversations to come.
We’d love to hear from others working in this space: What has your experience with Land Remediation Relief been like? And what do you wish it looked like?
Let’s turn a ‘niche incentive’ into something that actually delivers for people and the planet by using our voices to let HMRC know what we need.
Get in touch with Shaun Bartle and Gray Burke-Stowe to give us your perspective on the relief and potential changes or to see if your property projects might qualify for the current scheme.
Contact our team and discover how we can support your business