What is the residential property developer tax? The residential property developer tax (RPDT) aims to bring an end to unsafe cladding, provide reassurance to homeowners and support confidence in the housing market. It forms part of the government’s building safety package. The government announced the RPDT on 10 February 2021 and published draft legislation on 20 September 2021 and 8 October 2021. The RPDT provisions are contained in the Finance Act 2022 (FA 2022). The RPDT applies to the largest corporate residential property developers. The rate of the RPDT is 4% on profits exceeding a group-wide annual allowance of £25m. The tax applies from 1 April 2022 with anti-forestalling provisions to prevent developers accelerating profits to an accounting period ending before 1 April 2022. Broadly, the tax applies to the profits of corporation tax payers, above an annual allowance of £25m, arising from residential property development activities in relation to UK land in which they (or a related company) have (or have had) an interest and which they hold (or held) as trading stock. Profits are calculated

Residential conveyancing solicitors are frequently drawn into matrimonial finance proceedings, whether dealing with a family home transfer, completing a court-ordered sale, or advising on the mechanics of implementing a financial order. While the substantive law of ancillary relief and financial remedies is firmly the province of family law solicitors, a sound understanding of the property law dimensions of financial remedy proceedings is essential for any residential conveyancer. ‘Financial remedy proceedings’ in this Practice Note refers to the court proceedings entered into for the purpose of resolving financial issues between separating spouses or civil partners. ‘Financial orders’ refers to the order or orders made by the court as part of the financial remedy proceedings. This Practice Note addresses the key property considerations that arise in the context of financial remedy proceedings on divorce covering: • the legal framework • common financial orders and their conveyancing implementation • land registration and priority issues • practical traps, and • solicitors professional obligations In this Practice Note, references to ‘spouses’

This Practice Note looks at some of the issues around the payment and holding of deposits in residential conveyancing transactions. Nature and purposes of a deposit There is no common law requirement for a buyer to pay or a seller to demand a deposit. If a deposit is to be paid, there must be a specific provision to this effect in the sale contract. A deposit serves two purposes: • it provides the seller with security for the buyer’s performance of the contract, and • it is part payment of the purchase price when the sale completes The deposit gives the seller comfort that the buyer will perform their obligations under the contract. How much deposit is payable? The memorandum of sale should set out the amount of deposit which has been agreed between the buyer and the seller and which will be payable on exchange. The parties’ conveyancers should check with their respective clients, as a matter of course, that the amount specified in the memorandum is

This Practice Note contains links to the standard residential pre-contract enquiries. For general guidance on raising and responding to enquiries before contract, see Practice Note: Residential conveyancing—enquiries before contract. For guidance on enquiries before contract in relation to commercial property, see Practice Note: Commercial Property Standard Enquiries—CPSE. Enquiries for use in residential conveyancing transactions The following enquiries before contract are for use in residential

This Practice Note considers the different methods by which a person with an equitable interest in residential property may transfer, assign or convey that interest either to a fellow equitable owner or to a third party. It considers the different positions of joint tenants and tenants in common, and also the position where the transferring or assigning beneficiary is or is not an owner of the legal estate. Note: In practice, the terms ‘equitable’ and ‘beneficial’ tend to be used interchangeably when describing any interest in land which is not a legal estate or a legal interest (and in particular when referring to the interest of a beneficiary under an express, statutory, implied, resulting or constructive trust). However, section 1(3) of the Law of Property Act 1925 (LPA 1925) uses the term ‘equitable interest’, and so that term is used in this Practice Note. How an equitable interest may be held Where two or more persons own the entire equitable interest in land, they may hold it

Property analysis: A recent Court of Appeal decision on the payment of service charges, while correct in principal, was wrong on the facts, according to Peter Petts, barrister at Hardwicke Chambers.

This Practice Note is about the VAT treatment of residential service charges. Service charges payable to landlords Service charges are often payable to the landlord under a lease or licence, in the same way as rent, and in this case they follow the same VAT treatment as the rent. This is because there is no separate supply—the rent and service charge together are payment for a letting of serviced premises. This means that a service charge for residential property is normally exempt. The tenant incurs no VAT, but the landlord is unable to recover VAT on the related costs. Service charges for holiday accommodation, however, will normally be subject to VAT, in the same way as the rent (see Practice Notes: Exclusions from the exemption from VAT for land and buildings—Hotel and similar accommodation and Exclusions from the exemption from VAT for land and buildings—Holiday accommodation). Some charges may need to be dealt with differently: • there may be a separate supply, typically because tenants pay only according to their own consumption—metered utility charges are an example

This Practice Note explains the procedure for handling some of the most common residential service charge disputes under the Landlord and Tenant Act 1985 (LTA 1985), including the landlord’s power to recover residential service charges, the reasonableness of the demand, the timing of demands and the timing and wording of notices and how to bring an application in relation to service charge demands and recovery before the First Tier Tribunal (Property Tribunal) and the recovery of the landlord’s costs for service charge proceedings. For general guidance on the statutory consultation process for qualifying works and qualifying long term agreements, including potential disputes which can arise from that process, see Practice Note: Consultation for residential service charges. The power to recover residential service charges An overriding principle in relation to the recovery of service charges is that a landlord is not obliged to provide any service that is not expressly set out in the lease. Nor is a landlord entitled to levy a service charge, nor a leaseholder obliged to pay for anything, that is not

This Practice Note considers the potential status of a residential tenancy granted to a company in England and the potential status of any individual occupants authorised by that company. For guidance on the position in Wales, see accompanying drafting notes to Precedent: Tenancy agreement—residential tenancy granted to a company. Status of tenant company Pursuant to section 1 of the Housing Act 1988 (HA 1988), only individuals can hold an assured tenancy (AT). Therefore, a company cannot hold an AT. See Practice Notes: Private sector assured tenancies—granting and Granting assured and assured shorthold tenancies—pre-Renters' Rights Act 2025 position. It is unlikely that a tenant company’s occupation of a residential property would be a business tenancy under Part II of the Landlord and Tenant Act 1954 (LTA 1954), unless the tenancy satisfies the criteria in LTA 1954, s 23, ie a tenancy is within the LTA 1954 if the whole or a part of the demised premises are occupied by the tenant for the purposes of their business or for those and other purposes. The expression

Private residential tenancies The Private Housing (Tenancies) (Scotland) Act 2016 (PH(T)(S)A 2016) created a private sector residential tenancy called the ‘private residential tenancy’ (PRT), see Practice Note: Private residential tenancies—Scotland. PRTs were introduced on 1 December 2017 and replaced the assured and short assured tenancies regime (see ‘Tenancies created before December 2017’ below). From 1 December 2017, it is no longer possible to enter into a new assured or short assured tenancy. Assured and short assured tenancies in existence prior to 1 December 2017 continue to be governed by the Housing (Scotland) Act 1988 (H(S)A 1988) including the H(S)A 1988 termination provisions. This includes short assured tenancies in existence before 1 December 2017 which renew on a contractual basis (eg for further two monthly periods after the initial term) on or after 1 December 2017. A landlord and tenant can agree to convert their assured or short assured tenancy to a PRT on or after 1 December 2017, see Practice Note: Assured and short assured tenancies—Scotland. The PRT is an open-ended tenancy

This Practice Note considers the ‘right to rent’ scheme which applies to residential premises in England. It outlines the ‘right to rent’ scheme and links to the code of practice on the right to rent (which sets out how landlords and agents can comply with the regulations) and the code of practice for landlords (in relation to avoiding discrimination), as well as other Government guidance. Background—the 'right to rent' scheme The 'right to rent' scheme was introduced by the Immigration Act 2014 (IA 2014) as a means to prevent persons who are not lawfully present in the UK from accessing or remaining in private accommodation in the UK. Under the scheme, a private landlord who allows an adult, who is disqualified from entering into a residential tenancy agreement as a result of their immigration status, to occupy premises as their only or main home under a residential tenancy agreement is liable to payment of a penalty. However, a landlord will be excused from paying the penalty if they can establish

This Practice Note looks at the obligations implied by the Landlord and Tenant Act 1985 (LTA 1985) into tenancies of dwellings and relating to fitness for human habitation and repair. LTA 1985, s 9A (inserted by the Homes (Fitness for Human Habitation) Act 2018 (H(FHH)A 2018)) makes provision for certain leases of dwellings in England to contain implied covenants on the part of the landlord as to fitness for human habitation. LTA 1985, s 11 makes provision for certain leases of dwellings to contain implied covenants on the part of the landlord relating to repair. LTA 1985, s 11 does not apply to dwellings which are subject to occupation contracts under the Renting Homes (Wales) Act 2016 (RH(W)A 2016). RH(W)A 2016 contains provisions relating to fitness for human habitation and repair of dwellings in Wales—see Fitness for human habitation—dwellings in Wales below. For guidance regarding the application of LTA 1985, s 9A to dwellings occupied by agricultural workers, see Practice Note: Letting residential property to agricultural