We don't know what the rate is yet, but it does look certain that HMRC will be introducing a Residential Property Developer Tax in April 2022. This is a tax on property development profits. It applies to any company who 1) is subject to Corporation Tax; 2) has an interest in the land being "developed"; and 3) carries out a residential property developer activity which includes: dealing with residential property, designing it, seeking planning permission in relation to it, constructing or adapting it, marketing it and managing it. There is also an annual allowance meaning only larger developers are within the charge.
There is currently a consultation on the draft legislation, which closes on 15 October, with final decisions, including the rate of tax, announced at the Autumn Budget on 27 October.
Watch this space for more information on this new tax and how it may affect you.
This consultation will run until 15 October 2021, and views can be sent to RPDT.email@example.com. The final design of the tax, including the rate of the tax, will be announced at the Autumn Budget on 27 October.