UK VAT Capital Goods Scheme Changes
13 August 2026| CATEGORIES: Capital Goods Scheme, New legislation, VAT| TAGS: Capital Goods Scheme, partial exemption, property VAT
The UK Government has introduced significant changes to the VAT Capital Goods Scheme (CGS), with effect from 29 July 2026. Computers have been removed from the CGS entirely; and the expenditure threshold for land, buildings and civil engineering works has increased from £250,000 to £600,000, excluding VAT. The changes are intended to simplify the VAT rules and reduce the administrative burden associated with monitoring and adjusting input tax recovery on capital assets over a number of years.
