Property Expert David Plaister reports that following public consultation earlier this year, draft legislation for a new residential property developer tax (RPDT) has been published by HM Treasury.
The RPDT, which is to be included in the Finance Bill 2022, is to be payable from 1 April 2022 by residential property developers on their UK residential property development profits that exceed an unspecified allowance, with the final design of the tax – including tax rate – to be announced at the Autumn 2021 Budget.
The government first proposed the residential property developer tax in an effort to respond to growing concerns over the costs for cladding repairs, and the potential burden on leaseholders, and details have finally been set out in draft legislation published as part of a technical public consultation earlier this week.
It is understood a final policy decision is yet to be made on whether it will apply to build-to-rent developers.
There is a chance to comment on the details in the draft legislation up to 15 October and the government has produced explanatory notes.
As part of the Autumn Budget on 27 October, the chancellor Rishi Sunak will set out the final details, including the rate of tax and the specific allowances, and this is to be included in the 2021-2022 Finance Bill.