Key Facts

• The Government aims to raise at least £2 billion over a decade with the RPDT.
• The tax is set at a rate of 4% on profits exceeding an allowance for residential property development activities.
• New clause 3 proposes publishing an assessment of the impact of RPDT on the tax gap within a year.
• New clause 18 suggests annual reviews assessing revenue raised and estimated yield at different rates (6%, 8%, 10%).
• The RPDT rate was balanced to raise funds while not significantly impacting housing supply.
• The RPDT is applicable from April 1, 2022.
• It has a rate of 4% on profits over £25 million allowance.
• Estimated to generate £2 billion in revenue over a decade.
• Funding will help with cladding remediation costs.
• Cost of cladding remediation was estimated at about £15 billion.
• Labour and material shortages add an additional £1.2 billion.
• Clauses 32 and 33 have already been agreed upon.
• Clause 52 stands part to be dealt with later in proceedings.
• New clause 18 will not be pushed to a Division by the Labour Front-Bench spokesman.
• Clauses 34 to 38 define key terms necessary for the RPDT.
• Clause 34 excludes non-profit housing companies from being treated as residential property developers.
• Clause 47 introduces an exit charge for non-profit housing companies ceasing exemption status.
• Clause 48 defines a group of companies entitled to a single £25 million allowance for RPDT purposes.
• Clause 51 confirms the RPDT applies to accounting periods ending on or after 1 April 2022.
• The RPDT excludes non-profit housing associations from being treated as RP developers.
• Research found that private developers have allocated £643 million to remediate unsafe cladding while non-profits estimate their costs at over £10 billion.
• Clause 35 sets out the criteria for residential property development activities within the UK.
• Clause 36 defines an interest in land and its implications for RPDT applicability.
• Build-to-rent developers are excluded from the tax, but the MP seeks further clarification on this point.
• Registered social landlord definition differs between Scotland and England.
• In England, there are 1,625 registered social housing providers including 60 for-profit organisations.
• Clause 34(5) involves measures going to secondary legislation.
• Student accommodation is exempted under clause 37.
• Unite has 22 high-rise buildings affected by cladding in its portfolio.
• Clauses 39 to 42 set out how to calculate the tax base for RPDT.
• Clause 39 adjusts UK corporation tax trading profits or losses to arrive at adjusted trading profits or losses for residential property developers.
• Parts 1 to 4 of schedule 7 allow unrelieved RPDT loss to be carried forward and provide group relief rules similar to those in general corporation tax.
• Clause 43 provides for the operation of a £25 million annual allowance.
• The allowance can be adjusted pro rata when an accounting period is less than a year.
• Clause 44 applies to joint venture companies and sets out terms where a member is outside the scope of corporation tax.
• Clause 45 outlines the framework within which RPDT will operate.
• Schedule 8 makes provisions about management of RPDT, reducing administrative burdens.
• Clause 46 introduces a requirement for companies making an RPDT payment to provide information to HMRC in writing.
• Penalties are provided for failure to inform HMRC about payments owed.
• On November 30, the Government published a response document and draft statutory instrument following consultation on reform of tax rules for securitisation.
• Clause 67 grants power to HMT to make regulations related to stamp duty and SDRT in relation to securitisation companies.
• Clause 67 gives the Treasury powers through secondary legislation to make changes to stamp duty as it relates to securitisation.
• The Government had a consultation on this issue from which these provisions follow.
• HMRC has been under pressure, particularly during the pandemic.
• Since 2018, it has become clear that more ministerial involvement is needed in some circumstances.
• Clause 73 applies only to transition reviews and reconsiderations of these reviews conducted by the Trade Remedies Authority (TRA).
• The Secretary of State can call in a case if she considers it necessary for the wider public interest.
• The clause amends the Taxation (Cross-border Trade) Act 2018.
• Changes include altering codes used to classify goods or removing redundant codes.
• This measure reduces the burden on parliamentary time.
• Restrictions on rebated red diesel and biofuels will be adjusted from April 2022.
• Tobacco duty rates will rise in line with the tobacco duty escalator, with an extra increase of 4% on hand rolling tobacco and 1% on minimum excise tax for cigarettes.
• Smoking costs society almost £14 billion per year, including a £2 billion cost to the NHS.
• New clause 5 requires an assessment within 12 months of this Act coming into effect.
• The assessment must cover the impact on climate change goals and UK’s plans to reach net zero by 2050.
• New clause 15 mandates a review of VED revenue from light vehicles, considering electric vehicle uptake.
• Clause 77 uprates VED rates for cars, vans, and motorcycles by RPI from 1 April 2022.
• New clauses propose impact assessments within a year of the Bill's effect on climate change goals and net zero targets.
• The Government has committed £30 billion in domestic investment for the green industrial revolution since March 2021.
• Electric vehicles are not liable for vehicle excise duty or fuel duty.
• Fuel duty and VED currently raise around £35 billion annually for the Treasury.
• Tax revenues from car usage could fall by around £10 billion by 2030, £20 billion by 2035, and £30 billion by 2040.