The UK tax authority has launched an eight-week consultation on proposals to introduce a VAT zero-rate for land intended for the construction of new social housing.
The UK’s His Majesty Revenue and Customs (HMRC) has launched a public consultation on the VAT treatment of land sales intended for the construction of new social housing, including a proposal to introduce a new VAT zero-rate on 23 June 2026.
The consultation seeks views on the proposed VAT zero-rate for land intended for the construction of social housing. It examines how the current VAT rules affect land acquisition, development timing and cashflow, and invites feedback on the scope, design and administration of the proposed relief.
The government is seeking responses on the scope of the relief and how it should operate in practice.
The consultation includes a series of questions on the proposed relief, particularly its scope and administration. Respondents are encouraged to answer these questions directly but may also submit comments on other aspects of the policy, including its design and potential impacts.
HMRC said it welcomes responses from individuals and organisations across the UK with an interest in the proposal, including social housing providers, housing developers, landowners, constructors, tax agents and representative bodies.
The public consultation will remain open until 11:59 PM on 18 August 2026.
