Residential Property Developer Tax – build-to-rent and non-profit housing out of scope – Lexology

The government has decided that the RPDT will not be chargeable on build-to-rent (“BTR”) investors, or non-profit housing companies.


On Friday, HM Treasury announced to certain key stakeholders that profits arising from BTR development will not be chargeable to the RPDT.

Clearly, this is welcome news for those in the sector, who have maintained that it would be unfair to levy the RPDT (also known as the “cladding tax”) on BTR, since:

BTR landlords are normally responsible for ongoing maintenance costs (including cladding remediation works); and

the envisaged design of the RPDT would cause a dry tax charge to arise to BTR investors (the intention being that the tax would be charged on the notional profit from a deemed market value sale on practical completion).

While at the time of writing the government has not released an official statement on this point, updated

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