A new residential property developer tax (RPDT) will be included in the 2022 Finance Bill according to a policy paper containing draft legislation (and an explanatory note) published on 20 September 2021 by HM Treasury.
The new tax will be payable from 1 April 2022 by property developers on their residential property development profits that exceed an (unspecified) limit. The final version of the tax is to be announced at the Autumn 2021 Budget.
On 29 April 2021, HM Treasury published a consultation paper detailing its proposal for the design, implementation, and administration of a new residential property developer tax (RPDT), payable on profits over a £25,000 annual allowance from April 2022.
On 10 February 2021, the Housing Secretary announced a five-point plan to restore homeowner confidence and rehabilitate unsafe cladding on high-rise residential buildings, including a £5 billion package with at least £2 billion funded by a new tax payable by large residential property developers.
HM Treasury published, on 20 September 2021, a policy paper containing draft legislation, and an accompanying explanatory note, for RPDT. The deadline for comments on the draft legislation, which is to be included in the 2022 Finance Bill, is 15 October 2021.
The government intends to unveil the final design of RPDT (including the tax rate) at the Autumn 2021 Budget.
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This is not legal advice; it is intended to provide information of general interest about current legal issues.