Budget Update: Residential Property Developer Tax ("RPDT")

• Published date: 01 November 2021
• Subject Matter: Tax, Corporate Tax, Property Taxes
• Law Firm: Hillier Hopkins
• Author: Ms Natasha Heron

From 1 April 2022 the Government will implement new tax on residential property developers. The aim of the tax is to assist the Treasury with remediation works to unsafe cladding.

The RPDT will apply to companies developing UK residential property. The tax will be calculated as part of a company's existing corporation tax system and return. The tax will be chargeable at a rate of 4% against untaxed residential property development profits.

Companies and corporate groups with relevant profits below '25m per...