- At Tax Update 2026, the government launched a consultation on the VAT treatment of land intended for the construction of social housing.
- The proposal is to introduce a new zero rate on the sale of bare land for social housing development.
- The consultation seeks feedback on how the current VAT treatment affects the feasibility and timing of social housing developments, how a zero rate may influence behaviour, and the design of the proposed measure.
- Timing: the government issued a consultation on 23 June 2026, which closes on 18 August 2026.
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