Property Development: Taxation
The question
To ask the Chancellor of the Exchequer, what estimate she has made of the revenue raised by the Residential Property Developer Tax.
Answered by James Murray
The Residential Property Developer Tax (RPDT) is a 4% tax on the most profitable businesses undertaking UK residential property development to help pay for building safety remediation. The tax applies to developers' profits exceeding an annual allowance of £25 million for an accounting period.
The tax forms part of the government’s broader programme of work on building safety, which also includes significant capital funding (around £5.1bn) to remediate unsafe cladding on high-risk buildings.
According to HMRC’s latest Corporation Tax statistics, the tax raised £157 million in 2022-23 and £103 million in 2023-24.
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