You are here: Home - News -

UK government releases draft legislation for housing developer tax

by:
  • 11/10/2021
  • 0
UK government releases draft legislation for housing developer tax
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.

There are 0 Comment(s)

You may also be interested in