Residential Property Developer Tax
There is currently a government consultation inviting comments on a new tax on residential property developers which will also extend to developers of build to rent properties.
What Is the Tax For?
The introduction of the new tax on property developers is part of the governments 5 stage plan to bring an end to unsafe cladding and to ensure that the government will not be responsible for meeting all of the costs associated with the remediation of cladding in the long term. The industry tax and levy is seen as being key in ensuring that the industry pays “its fair share”. The tax will target companies or corporate groups that undertake residential property development work in the UK.
- The government aims to raise at least 2 billion towards remediation works
- The RPDT will be introduced in 2022 and run for 10 years (it is intended to be time-limited)
- It will apply to residential property developers seeing profits in excess of 25 million
Why a Consultation?
There is an opportunity to contribute views on the tax’s design, implementation and administration, including how “residential property” should be defined and what approach should be taken to setting the rate and allowance. Consideration should also be given to the potential impact on the supply of social and affordable housing.
The government have proposed that “residential property” shall be defined as “a house or flat that is considered as a single residence, generally together with the grounds and garden or any other land intended for the benefit of the dwelling.” This could be extended to include undeveloped land that has the benefit of residential planning permission and possibly even student accommodation and retirement homes.
Contact our Real Estate Dispute Resolution team today
If you would like to discuss any issue relating to this blog, please do not hesitate to contact a member of the Real Estate Dispute Resolution Team on 01895 207835 or 01895 207295, or email us at email@example.com
How can we help?
To speak to one of our specialist legal teams, please click the button below.03456 381381
Make an enquiry