- The Government is consulting on zero-rating VAT for sales of bare land intended for social housing, to reduce irrecoverable VAT costs.
- This could challenge the current “golden brick” structure, which delays transactions until enough construction has started to qualify for zero-rating.
- The change may simplify deals and improve cashflow for registered social housing providers, but key rules still need defining.
- Open questions include who qualifies, what evidence is needed, how mixed or partial developments are treated, and whether clawback provisions apply.
- The consultation closes on 18 August 2026.
Source: deeksvat.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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