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.
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