Specialists in Golden
Golden Brick is a term used to describe a sale of land which is under construction i.e. the landowner has begun construction and has reached a certain stage (the Golden Brick level) in that construction before transferring ownership. Other areas of Commercial Property that we cover include:
Trust Tinsdills With Golden Brick Assistance
Golden Brick arrangements are commonly used where the land is being sold to a Registered Provider of Social Housing (“RP”) and the land is subject to VAT.
Typically, an RP is unable to recover VAT. One of the advantages of using a ‘Golden Brick’ structure is that the VAT is nil rated provided the transaction is structured property.
Although Tinsdills do not provide advice on VAT we are able to work alongside your accountants to structure the transaction accordingly.
One of the main disadvantages of a Golden Brick structure is often cash flow because the landowner will not be able to complete the sale until the Golden Brick level is reached.
Considering whether a Golden Brick development is the right option for you should be considered at the outset when heads of terms are being agreed.
Seeking early advice from solicitors can be beneficial when negotiating heads of terms as any potential issues can be flagged up at this initial stage.
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