The Government has announced a plan to introduce a new tax for the UK Residential Property Development Sector with the intention of it taking effect from 1 April 2022.
Whilst the tax will be industry wide, it will apply to the largest residential property developers in relation to the money they make from UK residential development. This includes standalone companies, corporate groups and also profit shares from development activities conducted through joint ventures. As it stands, the suggested threshold of profits is in excess of an annual allowance of £25 million. There are a broad set of activities that fall under this proposal and can be found on the Consultation Paper here.
Given the potential impact of this proposed tax, the Government is seeking to consult with the relevant stakeholders and interested parties. The Government has asked for comments and feedback to be submitted via email to rpdtconsultation@hmtreasury.gov.uk by 22 July 2021.
For more information on this issue, please contact Matthew Smith, Senior Associate in Thrings’ Property Litigation team.
