Property Development: Taxation

(asked on 24th November 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether BTR developments will be affected by the Residential Property Developer Tax in the event that such developments are transferred or sold within a group for accounting purposes.


Answered by
Lucy Frazer Portrait
Lucy Frazer
Secretary of State for Culture, Media and Sport
This question was answered on 2nd December 2021

The Residential Property Developer Tax will apply to companies that make trading profits from residential property development activities and are part of a group that is generating relevant profits in excess of £25 million.

This means the tax will not apply to companies that construct properties to hold as investments.

It will, however, apply to companies that make trading profits from selling residential property, including where the purchaser is a member of the same group or is acquiring the property for investment purposes.

As with all other taxes, the Government will keep this under review.

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