<p>The government has launched a <a href="https://www.gov.uk/government/consultations/residential-property-developer-tax-consultation">consultation</a> on its previously announced residential property developer tax, aimed to raise at least £2 billion to help towards the cost of cladding remediation work.</p> <p><span>The Treasury is seeking views on the proposed design of the tax. It intends to apply the tax to the largest residential property developers - to profits above £25 million - and to a measure of profit from UK residential development.</span></p><p></p> <p><span>It is also proposed that the tax should apply to conversions as well as new development.</span></p><p></p> <p><span>The consultation does not cover the rate of the tax; this is likely to be announced at a “future fiscal event” once the design of it is determined. </span></p><p><span>But the government has set out some principles to guide the final rate, including that the tax burden should be proportionate and viewed in the context of the planned Corporation Tax rise to 25% in 2023.</span></p><p></p> <p><span>It also must not disproportionately impact on housing supply “or other government objectives on housing”. The government also intends to keep the tax rate stable without yearly fluctuations.</span></p><p></p> <p><span>But the consultation states that if the residential property developer tax does not raise “sufficient” revenue over ten years, the …