The UK government has released draft legislation and has called for technical consultation on a residential property developer tax, which will help fund cladding remediation costs.
The tax, which will come in to force from April next year, has been proposed by the government to ensure that the “largest developers make a fair contribution to help fund the government’s cladding remediation costs”.
The measure was first announced in February, at which point a call for consultation was made. The tax aims to raise at least £2bn over a decade.
It will be calculated and charged based on the profit of companies that carry out residential property development. The rate is still being discussed.
To be defined as a residential property developer, a company must be charged corporation tax and carry out residential property development activities.
Activities include dealing in residential property, designing it, seeking planning permission in relation to the land, constructing or adapting it, marketing it or managing it.
The government has said that non-profit housing companies, such as housing associations, are excluded from the new tax.
According to the draft, buildings that are already “designed or adapted”, or “in the process of being constructed or adapted” will be covered by the legislation.
Land where planning permission is being sought or has been granted and land that forms part of garden or grounds of a building are also included.
The final details, including the rate of the tax, are expected to be confirmed at the Budget on 27 October.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.