To combat the costs from the ongoing building safety crisis, a new UK-wide tax for residential property developers is being considered by the government.
A consultation has been launched on the design of a new residential property developer tax (RDPT) with the aim being to raise at least £2bn in revenue over the course of a decade to go towards the costs of remediation work to rectify high rise buildings with unsafe cladding.
Key elements of the RDPT proposal are as follows:
• The RDPT will apply from 1 April 2022
• The tax is to be focused on the development of residential properties located in the UK, both for sale and rent – build to rent will be included
• Not limited to just houses and flats, the definition of residential property in this context would also include dwellings, undeveloped land with planning permission obtained and existing buildings to be adapted for domestic use
• It would only apply to residential developers’ profits over £25 million
The consultation is due to close at 11.45pm on 22 July 2021.
If these proposals potentially affect you, or you would like to discuss any tax-related concerns in the context of your own business, get in touch with our team on 01788 539000 or 0116 261 0061.
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