New property developer tax aims to raise £2bn in ten years

The Treasury has published a consultation on the residential property developer tax which the government announced in February. The new tax would be temporary and apply to the largest residential property developers in relation to the money they make from UK residential development.

It would come into effect in 2022 and seek to raise at least £2bn over ten years. It is one of the measures the government is introducing to bring an end to unsafe cladding.

The charge would apply to the profits of a company or group which exceed an annual allowance of £25m. This would be a group-wide allowance which exempts the relevant residential property developer tax profits from liability to the tax and ensure that companies and groups with profits below this amount remain out of scope. It would not be possible to carry forward any unused allowance to future years.

Heather Powell partner...