Policy paper

Capital Goods Scheme simplification

This tax information and impact note is for VAT registered businesses that incur VAT on capital expenditure.

• From: HM Revenue & Customs
• Published: 8 July 2026

Documents

Simplification of the Capital Goods Scheme

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Details

This measure details the simplification of the Capital Goods Scheme to reduce the administrative burden for VAT-registered businesses.

From 29 July 2026:

• computers and items of computer equipment will be removed from the list of assets covered by the scheme
• the expenditure threshold for land, buildings and civil engineering work will increase from £250,000 (exclusive of VAT) to £600,000 (exclusive of VAT)

Published 8 July 2026