The Budget confirmed the introduction of a new VAT relief for land sold to registered social housing providers, a measure intended to help unlock land for social housing development and increase the delivery of affordable homes.
The announcement follows a Government consultation earlier this year, to which CTG submitted a detailed response. We were pleased to work alongside the National Housing Federation on this issue and are grateful to the members who contributed their expertise and practical insights to help inform our response. CTG was also among the organisations formally consulted by the Government.
The Government’s response recognised many of the concerns raised by stakeholders around the complexity, cost and administrative burdens associated with current “golden brick” arrangements. A “golden brick” arrangement is the property and development structure currently used to mitigate VAT to buy and sell land for new housing. It confirmed that the new relief is intended to simplify transactions, reduce reliance on complex contractual structures and support the faster delivery of social housing. The Government has also confirmed that legislation will be introduced to allow land sold to registered providers of social housing to be zero rated from 1 April 2027, supported by further HMRC guidance.
We will continue to engage with HMRC and HM Treasury as the measure is taken forward and keep members updated on further developments. Members interested in the detail can read the Government’s consultation response and next steps.