Budget update: Residential Property Developer Tax (“RPDT”)

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

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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.

For more information contact our friendly expert Natasha Heron on natasha.heron@hhllp.co.uk or +44(0)330 024 3200 and she will be happy to assist.

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Natasha Heron

Natasha is a member of the ICAEW as a qualified auditor and the Chartered Institute of Taxation, specialising in indirect taxes. Natasha has developed a specialism as an adviser on the Stamp Duty Land Tax implications of property transactions.

Contact Natasha at Natasha.Heron@hhllp.co.uk or on 01923 634460