Could Zero-Rated Land Challenge the Golden Brick?

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.

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.