Residential Property Developers Tax
Published 1 June 2022
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Project objectives
In February 2021 the government announced a package of measures to contribute towards remediation of cladding in certain high-rise buildings following the Grenfell Tower fire. Part of this package is a new tax on large residential property developers from April 2022, which aims to raise at least £2 billion over the next decade. This is therefore a revenue raising measure.
The Residential Property Developer Tax (RPDT) is not currently collected by HMRC so will be a new tax type/extension of Corporation Tax (CT).
This is a profits-based tax levied on the largest residential property developers with annual profits over £25 million. Initial proposals for the design of the tax were set out in a consultation document which was published on 29 April 2021.
The consultation document explained that the RPDT will be charged on in-scope profits arising on or after 1 April 2022. This means that the first customer returns will be due by from April 2023 (covering customers with accounting periods ending in April 2022 and subsequently).
Customer groups affected
Large UK residential property developers.
What customers will need to do
What customers need to do as a result of the change
- understand whether the tax applies to them
- if so, report applicable profit amount applicable to HMRC as part of CT600 return
- calculate amount of RPDT due
- report RPDT liability as part of CT600 return
- pay RPDT liability as part of CT liability
How customers will access this service
Customers will submit this information to HMRC using the existing CT600 form.
Customers will already submit a CT600 as part of their Corporation Tax obligations.
Customers purchase the CT600 software from third party software developers
When customers need to do this
The customer will need to report their RPDT amounts at the end of each financial year, with the first submissions expected in April 2023.
Customers will pay their RPDT at the same time they pay their CT liability. For most customers, this will be as part of the Quarterly Instalment Payments (QIPs) regime, via 4 quarterly instalments. The first payments are expected from April 2022, when the legislation comes into force.
Both are existing processes.
This equality impact assessment relates to the operational delivery of the RPDT.
Assessing the impact
We assessed the equality impacts on all the protected characteristic groups in line with the Equality Act and Public Sector Equality Duty and section 75 of the Northern Ireland Act:
- racial groups
- disabled
- sex
- gender reassignment
- sexual orientation
- age
- religion or belief
- pregnancy and maternity
- marriage and civil partnership
- carers
- political opinion (for Northern Ireland only)
- people who use different languages (including Welsh Language and British Sign Language)
There is no evidence to suggest any specific impacts on those customers within any of the protected characteristic groups listed above. Online guidance will be available. Extra support will be provided as required.
Opportunities to promote equalities
We have considered opportunities to promote equalities and good relations between people in each of the protected characteristic groups and those outside of that group.
None have been identified.
A full equality impact assessment is not recommended.