An alternative to the ‘golden brick’ scheme

By Niall Murphy

It has generally been the case that when house builders are selling partly completed dwellings to registered social landlords (RSLs), they try to structure the sale so as to constitute a ‘golden brick’-type transaction.

Golden brick is a term of art and means that where the conditions are satisfied, the house builder can sell housing developments to RSLs that have progressed beyond the golden brick stage at the zero rate of VAT. This means that the house builder is entitled to full recovery of VAT incurred on costs associated with the development and the RSL acquires the development at no VAT cost.

HMRC accepts that at the point the first brick is laid above foundation level (the golden brick), the house builder can zero-rate the sale or long lease in land that will form the site of a building provided a building is clearly under construction…

Click on the link below to read the rest of the Shoosmiths briefing.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Shoosmiths

View more briefings from Shoosmiths

Analysis from The Lawyer

  • Hester: declined bonus worth almost £1m

    Pay checks

    Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future

  • high street 150

    Focus: Alternative business structures - Law and new order

    There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…

Overview

2 Colmore Square
38 Colmore Circus Queensway
Birmingham
B4 6BJ
UK
http://www.shoosmiths.co.uk

Turnover (£m): 92.98
No. of lawyers: 393