HMRC has launched a consultation on draft legislation for the residential property developer tax (RPDT), which is part of remediation for cladding removal, ahead of its inclusion in the Finance Bill
The residential property developer tax will apply to accounting periods ending on or after 1 April 2022. For those with accounting periods that straddle that date, the periods before and after 1 April 2022 are to be treated as separate accounting periods and the amounts apportioned on a time basis.
First announced in February the tax is part of the government’s Building Safety Package with the revenue from the tax used to contribute to the overall costs of the cladding remediation programme with the tax set to raise an additional £2bn.
The residential property tax will affect companies that make an annual profit of over £25m and companies that undertake UK residential property development activities.
