New UK Residential Property Developer Tax: Triggers For Liability

• Published date: 29 September 2021
• Law Firm: Bryan Cave Leighton Paisner LLP
• Author: Ms Clare Eccles

Summary

Following publication of the new Residential Property Developer Tax for technical consultation, we examine when this tax will be charged and the types of development activities that will bring developers within scope.

The Treasury has published draft legislation for the Residential Property Developer Tax (RPDT) for technical consultation ahead of its inclusion in the 2021-22 Finance Bill. This follows an initial consultation on the policy design in April 2021, on which BCLP has previously blogged.

The RPDT is a new tax to be collected by HMRC that will take effect on 1 April 2022. It will be charged on large residential property developers and will be used to help pay for the removal of flammable cladding from high-rise buildings. The final design of the tax, including the rate of the tax, will be announced at the Autumn Budget on 27 October 2021.

Liability for RPDT

The RPDT will be charged on the residential property development profits of corporate residential property...