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ARTICLE · 07 OCTOBER 2021

Residential Property Developer Tax – FAQs

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What is RPDT? Residential Property Developer Tax (RPDT) is a new tax proposed to be levied against certain residential property developers on certain profits.

United KingdomReal Estate and Construction

What is RPDT? Residential Property Developer Tax (RPDT) is a new tax proposed to be levied against certain residential property developers on certain profits.

In late September, the government published draft legislation and initiated a technical consultation on RPDT, following on from an initial consultation in April this year. The final details of the tax are expected to be announced in the autumn Budget on 27 October 2021.

Why is the government proposing to introduce RPDT?

In the wake of the Grenfell tragedy, the government has agreed to remove unsafe cladding for leaseholders in all residential buildings 18 metres (6 storeys) and over in England. It is anticipated that RPDT will raise around £2 billion within the next decade, which the government hopes will partly cover these remediation costs (currently estimated at £15 billion).

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