UK Consults on Zero VAT Rate for Social Housing Land Sales

The UK government is consulting on a new zero VAT rate for land sold for social housing construction.
The goal is to reduce VAT-related development barriers and support more social housing delivery.
Current VAT rules leave many social housing providers partially exempt, creating unrecoverable VAT costs.
The relief is intended to be neutral and policy-driven, not influenced by tax distortions.
Key issues include making sure savings increase housing supply, not land prices, and setting clear eligibility and compliance rules.

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.