Draft legislation for Residential Property Developer Tax published

Draft legislation to tax residential developers to fix dangerous cladding has been published by the Treasury. The chancellor is expected to announce the tax, which will hit housebuilders with profits over £25m, in the autumn Budget. The Residential Property Developer Tax appears to show that ministers will tax profits made on land that has secured planning permission, but has yet to be built on. The full text of the draft bill can be found here. The tax is expected to raise at least £2bn a year and will run for 10 years. The government held a consultation seeking views on the design of the tax between 29 April and 22 July 2021, during which it received 130 written responses. It is now holding a technical consultation on the draft legislation, which will run until 15 October, ahead of its inclusion in the 2021-22 Finance Bill. The final design of the tax, including the rate of the tax, will be announced at the autumn Budget on 27 October. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews