New VAT Consultation Could Transform Social Housing Land Transfers

• The UK government has launched a consultation to introduce a zero VAT rate on sales of bare land for social housing, potentially changing how such developments are structured and financed.
• Current “golden brick” rules mean VAT relief only applies after foundation level, forcing registered providers to wait before transferring land and increasing costs, complexity, and delays to grant access.
• The proposed relief would let registered social housing providers acquire land earlier, improving cash flow and reducing reliance on golden brick structures.
• The consultation asks about definitions, certification, mixed-tenure schemes, and what happens if development plans change after transfer.
• If adopted, the change could simplify development agreements and reduce delivery costs, but mixed-use and tenure issues will need careful VAT rules.

Source: insights.devonshires.com

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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