We have received a number of queries about BNG. For those not familiar with the topic, BNG means that property developers have an obligation to ensure that habitats for wildlife are left in a measurably better state than they were before the development.

In England, BNG is mandatory as part of the planning process and the amounts involved can be significant. Developers have the option to improve their own site(s), work with a third party, or as a last resort buy credits from DEFRA. It is likely that many charities will be involved in BNG as providers and managers of suitable habitat, and so CTG is planning to work with HMRC to ensure that they update their guidance to minimise confusion around tax treatment of this income stream. Because a BNG contract lasts for 30 years, our Chair is also working with the ICAEW Charities Committee to confirm the accounting treatment of the income stream and costs.