UK raises the Capital Goods Scheme threshold to GBP 600,000 and drops computers
This page records one dated change. For the rules in United Kingdom as they stand today, see the United Kingdom guide →
- Jurisdiction
- 🇬🇧 United Kingdom
- Tax
- VAT
- Change type
- Threshold
- Status
- In force
- Impact
- Action required
- Effective
- 29 July 2026
- Instrument
- GB-SI-765-2026
- Authority
- HM Revenue and Customs
- Systems
- Tax engine, ERP, Reporting
- Verified
- Fetched from official source · high confidence
Partly exempt businesses, and businesses with non-business use, holding or acquiring land, buildings or civil engineering works. Computers leave the scheme entirely.
Update Capital Goods Scheme asset registers and adjustment workpapers to the GBP 600,000 threshold and stop tracking computers as Part 15 capital items for expenditure incurred from 29 July 2026.
Tax engineERPReporting
The Value Added Tax (Amendment) Regulations 2026 (S.I. 2026/765) raised the Capital Goods Scheme minimum threshold for land, buildings and civil engineering works from GBP 250,000 to GBP 600,000, and removed computers and computer equipment from the list of Part 15 capital items. The change came into force on 29 July 2026 and does not apply to relevant expenditure incurred before that date.
What changed in detail
The Value Added Tax (Amendment) Regulations 2026 (S.I. 2026/765) raised the Capital Goods Scheme minimum threshold for land, buildings and civil engineering works from GBP 250,000 to GBP 600,000, and removed computers and computer equipment from the list of Part 15 capital items altogether.
Both changes came into force on 29 July 2026 and do not apply to relevant expenditure incurred before that date. HMRC set out the change in Revenue and Customs Brief 7 (2026).
What it means
A genuine simplification, and a rare one — a large tranche of property spend and every computer purchase drop out of ten-year and five-year adjustment tracking.
The trap is the commencement rule. Existing capital items stay in the scheme on the old rules, so for several years you are running two populations side by side, and a blanket “raise the threshold” edit to the fixed-asset register will quietly stop adjustments that are still owed. Split the register by expenditure date before you touch the threshold.