30/08/2026
VAT UPDATE: Capital Goods Scheme threshold has increased
If your business has significant capital expenditure, this is a VAT change worth knowing about.
From 29 July 2026:
🏢 The Capital Goods Scheme threshold for land, buildings and civil engineering works has increased from £250,000 to £600,000 (excluding VAT).
💻 Computers and computer equipment have also been removed from the CGS threshold.
This could be relevant to businesses, charities and other organisations with significant capital expenditure and a mixture of taxable and exempt supplies.
If you have recently made, or are planning, a significant investment, it may be worth reviewing how this change affects your VAT position.
Need help reviewing your VAT position?
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