New tax on residential property developments now in force


New tax on residential property developments now in force

This page was last updated on May 10, 2022
The new Residential Property Developer Tax came into effect from 1 April 2022, and sees profits of any residential development company exceeding £25m taxed at 4%.

The new Residential Property Developer Tax (RPDT) is intended to help the government raise around £2bn in revenue over 10 years to pay for the cost of remediating cladding safety issues on buildings. The calculation of profits is based on the rules of corporation tax and aligned to its deadlines.

The new tax applies only to companies, so not-for-profit home-building organisations – such as social landlords, housing associations and registered social providers – are exempt, as are any care homes and other housing for the elderly that provides personal care.

For further information please speak with your usual Shipleys contact

Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary.

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