Developers know that residential property developer tax (RPDT) will apply from 1 April 2022 for companies or groups of companies undertaking UK residential property development with annual profits in excess of £25m. The Government announced in the Autumn Statement 2021 that the rate of RPDT would be 4% above the £25m allowance which is to be shared amongst group members.
Perhaps Michael Gove has being ding some sums and realises that the potential £2by anticipated to be raised over the next 10 years will not be sufficient and hence the rumours of targeting developers with further taxes.
Having adopted the relatively rare strategy (within the UK tax code) of imposing a hypothecated tax; is Mr Gove now considering an even rarer strategy of a retrospective tax?
Michael Gove is considering penalising companies linked to the Grenfell Tower tragedy, leaked government documents reveal. The firms have made pre-tax profits of at least £6.7bn in the four years since fire ripped through the block of flats, killing 72 people. The housing secretary has commissioned his officials to draw up a “detailed survey” of the profits made by the firms involved in the cladding scandal as he explores options for how to “hold these companies to account”. Leaked documents from his department reveal that Gove is preparing to target more than a dozen firms given “core participant” status in the Grenfell inquiry. The companies expected to be in the firing line include Kingspan, Studio E, Rydon, Max Fordham, Artelia UK, Witt UK PSB, JS Wright & Co, Harley Curtain Wall/Facades, Celotex, Arconic, and CEP. (Piers Wehner)
