Final sittings of the Finance (No 2) Bill 2021-22 debates

The public bill committee resumed with a discussion on the new residential property developer tax (RPDT) (clauses 32 and 33). Financial secretary to the Treasury Lucy Frazer reminded the MPs that this measure had been introduced as part of the building safety package announced in February 2021. The intention is to ensure developers make a ‘fair contribution’ to the costs of remediation such as the removal of cladding. The tax will be charged at 4% on profits of businesses carrying out residential property development activity that exceed £25m. This temporary tax – which will be in place for ten years – will be treated as if it were an amount of corporation tax.

In response to the proposed new clause tabled by Alison Thewliss (SNP) that the government publish an assessment of the impact of the new tax on the tax gap and whether it has...