Residential Property Developer Tax

Introduction

Residential Property Developer Tax (RPDT) is a 4% tax on profits from UK residential property development that applies to certain companies with large-scale development activities. If your company is liable for RPDT, you'll need to complete supplementary form CT600N alongside your standard Corporation Tax return to calculate and report the tax due, handle allowance allocations within groups, and claim or surrender group relief.

What is form CT600N?

Form CT600N is a supplementary page you must complete if you're recording an amount of RPDT in box 497 of your main Corporation Tax return (form CT600). This form serves three main purposes:

• Calculating your company's RPDT liability
• Allocating allowances across a group of companies
• Managing the surrender and claim of RPDT group relief (unless you use simplified arrangements)

Once you've completed the CT600N, you copy the amount from box N285 into section 4, then enter this figure into box 497 of your main CT600 form.

Basic company information

The form starts with standard details about your company:

• Company name (box N1)
• Your company's 10-digit Unique Taxpayer Reference (box N2)
• The accounting period start and end dates in DD-MM-YYYY format (boxes N3 and N4)

The period covered cannot exceed 12 months.

Section 1: Allocation statement for groups

If your company is part of a group, one company needs to be nominated as the "allocating member" to distribute the RPDT allowance across group companies.

Allocating member responsibilities

If you're the nominated allocating member, put an 'X' in box N5. You'll then need to complete page 2 of the form, which includes:

• The allocating period dates (boxes N15 and N20)
• Details of any previous allocating member if this has changed (boxes N25 and N30)
• Confirmation if you're the Ultimate Parent Company of the group (box N35), or the name of the Ultimate Parent if not (box N40)

The allocation table (box N45)

This is where you distribute allowances to group companies. For each company receiving an allocation, enter:

• The company name
• Its accounting period
• Its tax reference
• The amount allocated to that company

The total of all amounts allocated goes in box N50.

You must authorise the statement by putting an 'X' in box N55 once complete.

If you're not the allocating member

If the allocation statement has already been sent to HMRC for this period, simply put an 'X' in box N10. You don't need to complete boxes N15 to N65 in this case.

Section 2: Joint venture companies

This section only applies if your company is a relevant joint venture company whose allowance is restricted because of an "excluded member" and you've received an allocation of notional allowance.

An excluded body is defined in legislation as a company that is only liable to RPDT because it's a non-profit housing company.

If this applies to you:

• Enter the notional allowance claimed in box N70
• Mark box N75 with an 'X' if you're allocating notional allowance on behalf of an excluded body
• Complete table N80 with details of allocating companies (name, tax reference, and amount allocated), with the total in box N85
• Provide details of excluded companies that are members of the joint venture in table N90

Section 3: RPDT group relief

This section handles the surrender and claim of RPDT between group companies. It has four parts.

Part 1: Claiming RPDT group relief

If you're claiming RPDT group relief, complete table N95 with details of each surrendering company:

• Company name
• Accounting period start and end dates (if different from your period)
• Tax reference or company registration number
• Amount of surrender claimed

Enter the total claimed in box N100, then copy this figure to box N260 on the form.

Unless simplified arrangements are in force, you must attach a copy of each surrendering company's notice of consent to the claim. If simplified arrangements apply and you're not supplying consent copies, authorise the claim in table N95.

Part 2: Surrendering amounts as RPDT group relief

If your company is surrendering relief to other group companies, complete table N120 with details of each claimant company:

• Company name
• Accounting period dates (if different)
• Tax reference or company registration number
• Amount surrendered

The total goes in box N125.

Unless simplified arrangements are in force, you need a notice of consent for each claim. This part of the form can serve as the notice of consent if completed by an authorised person (box N150). Send a copy to the HMRC office dealing with the claimant company's return when the claimant submits its return.

Part 3: Claiming group relief for carried forward losses

This mirrors Part 1 but deals specifically with carried forward losses. Complete table N160 with surrendering company details and amounts, enter the total in box N165, then copy this figure to box N265 on the form.

The same rules about consent notices and simplified arrangements apply as in Part 1.

Part 4: Surrendering group relief for carried forward losses

This section follows the same principles as Part 2 but for carried forward losses. The form guidance references this part but the detailed field descriptions follow the same pattern as the other parts.

Who needs to complete this form?

You must complete form CT600N if:

• Your company has an RPDT liability to report in box 497 of form CT600
• You're the allocating member of a group distributing RPDT allowances
• Your company is claiming or surrendering RPDT group relief
• You're a joint venture company dealing with notional allowances and excluded members

Timing and submission

Complete the CT600N for the same accounting period as your main Corporation Tax return. The form must be submitted alongside your CT600, with all necessary consent notices attached unless simplified arrangements apply.

Sources

• Supplementary pages CT600N: Residential Property Developer Tax
• HMRC internal manual: Residential Property Developer Tax Manual
• HMRC internal manual: Company Taxation Manual

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.