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ARTICLE · 02 NOVEMBER 2026

Biodiversity Net Gain: The Latest Changes And What Lies Ahead

Farrer & Co
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The UK government's biodiversity net gain requirements underwent significant changes in August 2024, broadening exemptions for smaller developments while maintaining environmental enhancement goals. New HMRC guidance clarifies the tax treatment of BNG payments, and upcoming requirements for nationally significant infrastructure projects will expand the scheme's reach from November 2026.

United KingdomEnvironment
Elizabeth Earle
Elizabeth Earle

Cynics may observe that the speed with which consultations were launched following the introduction of statutory biodiversity net gain (BNG) in spring 2024 suggests that its initial incarnation may not have been wholly without flaws.

BNG requires developers to supply at least a 10% increase in biodiversity net gain on any development site as a condition of planning permission. The 10% gain can be achieved either:

  • on the development site, which can work nicely if green spaces are added to a housing development;
  • off-site, by paying a landowner to do it; or
  • as a last resort, buying statutory credits from the government.

The problem for the government is that it is trying to ride two horses: enhancing the environment, while not slowing down the 1.5m new homes it promised.

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