The general public and the regeneration sector can both expect carrots rather than sticks in the chancellor Gordon Brown’s pre-election Budget on 16 March.

The industry is likely to see the introduction of 100% capital allowances for the renovation of empty properties in stamp duty exemption areas. Land remediation tax relief could also be extended to offset allied costs such as demolition.

“These are items that have been talked about for some time, so their introduction wouldn’t come as a great surprise. There is a clear focus of attention on incentives to help clear up brownfield sites,” said Ben de Waal, partner with Davis Langdon Crosher & James.

The Inland Revenue and ODPM have recently completed a review of the fiscal incentives introduced after the urban taskforce report of five years ago, and its findings could influence Brown to provide more help for soil remediation.

Davis Langdon Crosher & James is working with the trade association Environmental Industries Commission to make representations to the Inland Revenue to clear up a number of issues surrounding the present land remediation tax relief.

They are seeking clarification on whether the removal of Japanese knotweed and abortive survey costs qualify for relief, and the interpretation of the subsidy rules. “We would hope for clarification on these points in a couple of months,” said de Waal.

Once the election is over, the industry could face more taxes. “I’d expect to see development land tax early in Labour’s next term,” said Yolande Barnes, head of mixed use research at agent Savills.

The Treasury is due to report its decision on the tax or planning gain supplement, which would be applied to sites on receipt of planning approval, by the end of the year.

Source

RegenerateLive