The government has released details of a new property tax.
It’s the Residential Real Estate Developer Tax, first announced in early summer as a way to fund remediation of properties with unsafe coatings.
However, the government’s announcement this weekend does not say what the tax rate will be – this is expected to be revealed in the budget in just over two weeks. In the meantime, the government says its goal is to get “top developers to make a fair contribution to help fund the cost of cleaning up the government’s pavement.”
This is what we know so far.
The tax will be applied from April 1, 2022 to most new developments, whether or not they have an appropriate coating on their properties.
The new tax will be levied on developers who already pay corporate tax and will be applied to predominantly residential developments.
The government says it aims to raise £ 2 billion through the tax by the end of this decade.
It should apply to converted properties – for example, an office building converted to residential.
The value of gardens and land will also be taken into account when assessing the new global development tax.
Here is the bill released this weekend.