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

The tax originally went out for Consultation from 29 April to 22 July 2021 and received 130 responses. The draft legislation has been published for technical consultation ahead of its introduction in the 2021-22 Finance Bill. It is intended to target large corporate property developers and the amounts raised will be used to help fund the government's cladding remediation fund.

The legislation sets out:

  • The tax will affect those companies who undertake residential property development activities.
  • Taxable profits will be adjusted profits from development activities net of allowable losses that are in excess of a set 'allowance'.
  • The tax will take effect for accounting periods ending on or after 1 April 2022. Accounting periods straddling that date will be apportioned.
  • The applicable tax rate is yet to be announced, as is the developer allowance.
  • The developer, or a related company, has to have, or have had, an interest in the land on which the activities take place on.
  • Activities include:
    • Dealing in residential property.
    • Design.
    • Seeking planning permission.
      • This means companies who hold land banks will be subject to this tax if planning permission is sought, even if no other activity takes place.
    • Construction or adaption.
    • Marketing.
    • Management.
    • Other ancillary activities.
  • Residential property means in relation to a building for use as a dwelling or land forming part of such a building. 

The consultation will run until 15 October 2021 and submissions can be sent to This email address is being protected from spambots. You need JavaScript enabled to view it.. The final details of the tax will be announced at the Autumn Budget on 27 October 2021.

Useful guides on this topic

Consultation on Residential Property Developer Tax
HM Treasury has published 'Residential Property Developer Tax (RPDT): Consultation on policy design', a new tax that forms part of its Building Safety Package ahead of its inclusion in the 2021-22 Finance Bill. This measure targets only the largest developers.

External Links

Residential Property developer Tax: draft legislation 


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