On 10 February 2021, the Government announced that it would introduce a new Residential Property Developer Tax as part of its Building Safety Package. The Government is now consulting on the design of that tax ahead of its inclusion in the 2021-22 Finance Bill. The consultation runs until 22 July 2021.
We are extremely concerned that the tax is limited to only £2 billion over 10 years (£200 million per year), representing a very small fraction of the actual cost to fix defects that the construction and associated industry are in many cases responsible for and that, according to estimates, may cost between £15 billion to £50 billion to fix.
We are also concerned that the proposed design would mean that the tax only applies to residential developers’ profits over £25 million. Leaseholders with income of £25,000 or less are facing bills of up to £150,000 to fix defects of developers, and it is very concerning that the government appears to be capping the liability of the construction sector for their own defects, which is far greater than £200 million per year.
Please respond to the Residential property developer tax: Consultation on policy design and make your voice heard.
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