Consultations begin on a proposed new Property Tax
The government has launched a formal consultation process with a view to introduce a new Residential Property Developer Tax as part of its Building Safety Package including cladding repair work.
The tax is one of the government’s measures to bring an end to unsafe cladding, provide reassurance to homeowners and support confidence in the housing market. The government is consulting on the design of that tax ahead of its inclusion in the 2021-22 Finance Bill. The consultation runs until 22 July 2021.
Housing Secretary Robert Jenrick says:
“We’re making the biggest improvements to building safety standards in a generation, investing over £5 billion helping to protect leaseholders from the cost of replacing unsafe cladding on their homes and ensuring industry is held to account for the wrongs of the past.
“This tax will strike the right balance between developers making a contribution and ensuring fairness for the taxpayer.”
And the Financial Secretary to the Treasury, Jesse Norman, adds: “Ending the use of unsafe cladding is a priority for the government, as it builds back better from the pandemic.
“Given the significant costs associated with the removal of unsafe cladding, it is right to seek a fair contribution from the largest developers in the residential property development sector to help fund it.”