UK:
Budget Update: Residential Property Developer Tax ("RPDT")
01 November 2021
Hillier Hopkins
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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 annum are currently exempted from RPDT and therefore
the tax is expected only to apply to the largest residential
property developers.
RPDT will be in place until a target of £2bn is
raised.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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