HM Treasury consultation on draft legislation for new property tax

Rishi Sunak
Rishi Sunak

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. Here is a link to both documents.

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.

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3 Comments

  1. #ImpressiveConveyancing

    Or in other words:

    “We have absolutely no ideas how to attract foreign investment into the UK so as to tax them, and relieve tax on the UK population”

    Tax tax tax.

     

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    1. smile please

      Think you will find UK attracts one of the highest foreign investments worldwide.

      The reason we are going to face a decade of Tax rises is a global pandemic which has led to massive spending by the government. It needs to be paid back.

      Report
  2. Gloslet

    In summary;
    The Government want more houses built
    The Government want more affordable houses built
    So, the Government taxes developers who develop to meet the Government policy and put the price up to cover the additional tax.

    The result is higher house prices which in turn will leads to higher inflation and higher interest rates.

    That results in lower economic activity, more benefits paid and less tax collected.

    Report
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