The Treasury has confirmed that the new Residential Property Developer Tax (RPDT), which was announced in February, will be introduced in 2022 to provide contributions to fund cladding remediation work on high rise buildings. The RPDT will only be applied to company profits that exceed an annual allowance, and it is expected to raise £2 billion over the next 10 years. It will be collected in addition to the Gateway 2 Levy due to be introduced as part of the Building Safety Bill.

The Treasury has launched a consultation on the RPDT to gather feedback on how it should be designed, the deadline for responses on 22 July 2021.