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What is the Residential Property Developer Tax (RPDT)? What is residential property and who is a developer? Are there any allowances or exemptions?

An 'At a glance' guide to Residential Property Developer Tax.

What is Residential Property Developer Tax?

From 1 April 2022, the Residential Property Developer Tax (RPDT) will be levied on the profits of large companies. 

What is Residential Property Development?

The activities that are caught within this category are quite wide-ranging; they must be carried out by a developer:

What is residential property?

A residential property is any building used as a dwelling. This includes buildings in the process of being constructed or adapted for such use and the accompanying gardens and grounds. Land with planning permission, or where it is being sought, will also fall within the definition if this would cause the land or buildings to meet the criteria.

Exclusions include:

Groups

Administration

The relevant profits and tax within the scope of RPDT will be reported on the company’s tax return and the tax due will be payable alongside any other Corporation Tax liability.

Useful guides on this topic

Residential Property Developer Tax draft legislation published
The government has published draft legislation for the Residential Property Developer Tax. The legislation will be open for technical consultation until 15 October 2021.

Profits from dealing in or developing UK land
A guide to the rules which replaced the old transactions in land provisions and extended UK taxation to all profits from trading in and developing UK land, regardless of residence.

Small print and links

HMRC Property Developer Tax Manual

Legislation:

The Residential Property Developer Tax (Allocation of Allowance) Regulations 2022 

Part 2 Finance Act 2022


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