Commercial Finance
Developer cladding tax consultation due ‘in coming months’
A consultation on a tax for the largest residential property developers to pay for cladding remediation is due to be published in the coming months.
This was confirmed by the Treasury today as part of 30 tax updates, consultations and documents.
The tax will be introduced next year.
It follows an announcement made by housing secretary Robert Jenrick last month, where he said £2bn needed to be raised over a 10-year period.
At the time, Jenrick said: “The government has always expected the industry to contribute towards these costs and some have already done so.
EPC planning: act now or risk the rush later
Sponsored by BM Solutions
“The tax will ensure the largest property developers make a fair contribution to the remediation programme in relation to the money they make from residential property, reflecting the benefit that they will derive from restoring confidence to the UK housing market.”
A levy is also expected to be applied when developers apply to build the largest buildings.
The government has been widely criticised for its handling of the cladding scandal, including by brokers and lenders.
However, it is maintaining that leaseholders in buildings under 18 metres high will have to cover the costs of repairs and replacements despite bearing no fault for the situation.