Explanatory note

These Regulations make provision in relation to the allocation of the allowance that is deducted from profits chargeable to the residential property developer tax.

Part 1 is introductory and provides for commencement, citation and interpretation.

Part 2 makes provision for and about the nomination of a company in a group to be the allocating member in a group, changing the allocating member of a group, the submission of an allowance allocation statement and amending such a statement.

Part 3 makes provision in relation to the notional allowance that a joint venture company which is not chargeable to corporation tax can allocate to its joint venture interests. Provision is made for the disapplication of section 44 of the Finance Act 2022 in certain cases, the nomination of another group company to submit a notional allowance statement, the submission of a statement and amending a statement.

Part 4 makes provision in relation to the amendment of company tax returns in consequence of an allowance allocation statement, a notional allowance statement or an amendment to such a statement.

A Tax Information and Impact Note covering this instrument was published on 27 October 2021 alongside the draft legislation for the Finance (No. 2) Bill and is available on the website at: https://www.gov.uk/government/publications/residential-property-developer-tax. It remains an accurate summary of the impacts that apply to this instrument.