The government has published draft legislation and opened a technical consultation for the proposed Residential Property Developer Tax. The new tax will be charged on the profits of companies carrying out residential property development.
The Government has introduced the charge to ensure that the largest developers make a fair contribution to help fund the government’s cladding remediation costs. All profitable residential developers may be subject to the new tax, regardless of the nature of their developments, or whether they have relevant cladding at their properties.
The draft legislation follows a public consultation on the Residential Property Developer Tax earlier in the year. The technical consultation seeks views on the draft legislation ahead of its inclusion in the 2021-22 Finance Bill.
This consultation will run until 15 October 2021, and views can be sent to RPDT.mailbox@hmrc.gov.uk.
The final design of the tax, including the rate of the tax, will be announced at the Autumn Budget on 27 October.
