Finance Act 2022

Section 45

SCHEDULE 8 Management of RPDT

Amendments of TMA 1970

1 (1) Part 5A of TMA 1970 (payment of tax) is amended as follows.

(2) In section 59E (further provision as to when corporation tax is due and payable), in subsection (11) after paragraph (d) insert—

“(e) to any sum chargeable on a company under section 33 of FA 2022 (residential property developer tax) as if it were an amount of corporation tax chargeable on the company.”

(3) In section 59F (arrangements for paying corporation tax on behalf of group members), in subsection (6)—

(a) omit “and” at the end of paragraph (b);

(b) after paragraph (c) insert “, and

(d) to any sum chargeable on a company under section 33 of FA 2022 (residential property developer tax) as if it were an amount of corporation tax chargeable on the company.”

Amendments of FA 1998

2 (1) Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended as follows.

(2) In paragraph 1 (meaning of “tax”)—

(a) omit the “and” at the end of the paragraph beginning “section 330(1)”;

(b) omit the “and” at the end of the paragraph beginning “step 5 in section 371BC(1)”;

(c) at the end of the paragraph beginning “paragraphs 50 and 51” insert “, and

section 33 of the Finance Act 2022 (residential property developer tax).”

(3) After paragraph 7 insert—

“Residential property developer tax

7A (1) A residential property developer must include in its company tax return for an accounting period a statement of—

(a) its RPD profits in relation to the accounting period,

(b) its adjusted trading profits or adjusted trading losses for that period,

(c) the amount of any joint venture profits that are attributable to the developer for that period,

(d) any allowable RPDT loss relief which the developer is given for that period,

(e) any allowable RPDT group relief claimed by the developer for that period,

(f) any allowable RPDT group relief for carried-forward losses claimed by the developer for that period, and

(g) its allowance for that period,

unless sub-paragraph (2) applies in relation to the accounting period.

(2) This sub-paragraph applies where it is reasonable to assume that the developer would have no liability to residential property developer tax in relation to the accounting period if no amount were deducted in the calculation at section 38 of the Finance Act 2022 in relation to that accounting period in respect of any—

(a) allowable RPDT loss relief,

(b) allowable RPDT group relief, or

(c) allowable RPDT group relief for carried-forward losses.

(3) Terms used in Part 2 of the Finance Act 2022 have the same meaning in this paragraph as in that Part (unless the contrary intention appears).”

(4) In paragraph 8(1) (calculation of tax payable), under the heading “Third step”, at the end insert—

“4.

Any amount of residential property developer tax chargeable by virtue of section 33 of the Finance Act 2022.”