United Kingdom: HMRC announces changes to the VAT Capital Goods Scheme effective 29 July 2026. Computers and computer equipment are removed, the threshold for land, buildings and civil engineering works rises to £600,000, and other rules remain unchanged.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
Mayer Brown · 1 day ago
United Kingdom: HMRC has updated its VAT Input Tax Manual and Notice 700/17, affecting how employers and trustees recover VAT on pension scheme services. The changes remove the 30/70 split rule and tripartite contract guidance, and clarify that employers must contract directly for services to recover VAT.
Tradeshift · 1 day ago
The United Kingdom’s Commercial Payments Bill will cap payment terms at 60 days and introduce 8% interest on late payments, while the e-invoicing mandate requires all VAT-registered businesses to exchange structured invoices over Peppol by 1 April 2029. Both measures aim to tackle the £11 billion annual cost of late payments, but the article argues that e-invoicing alone is insufficient without process improvements.
The Carer · 3 days ago
The UK will require all businesses, including care providers, to issue invoices electronically from the April 2029 tax year. The mandate aims to replace paper-based invoicing with machine-readable, structured data to improve accuracy and efficiency. Care homes stand to gain automation, better visibility and stronger compliance through this shift.
LinkedIn · 3 days ago
The United Kingdom will introduce mandatory e-invoicing from April 2029, as discussed in a panel on the upcoming framework. The panel will cover the government roadmap, Peppol's role, and practical steps for businesses to prepare.
Casino.org · 3 days ago
UK operators face real VAT implications as HMRC clarifies that prize draw entries are subject to the standard 20% rate. Margins could fall 25-35% and retrospective liabilities may arise.
Scottish Financial News · 3 days ago
Scotland: Charities urged to plan early for VAT as the Capital Goods Scheme threshold rises from £250,000 to £600,000 from 29 July 2026. The change reduces the number of projects requiring decade-long monitoring, easing administrative burden for charities and third-sector organisations.
Key Takeaways
From 29 July 2026, HMRC's VAT Capital Goods Scheme in the United Kingdom removes computers and computer equipment, raises the threshold for land, buildings and civil engineering works to £600,000, and keeps other rules unchanged.
From 29 July 2026, HMRC removes computers and computer equipment from the VAT Capital Goods Scheme in the United Kingdom.
From 29 July 2026, the threshold for land, buildings and civil engineering works in the United Kingdom's VAT Capital Goods Scheme rises to £600,000 (excluding VAT).
From 29 July 2026, HMRC confirms that the rules for aircraft, ships, boats and other vessels remain unchanged in the United Kingdom's VAT Capital Goods Scheme.
From 29 July 2026, capital items already covered by the United Kingdom's VAT Capital Goods Scheme continue to be covered until their normal adjustment periods end.
Primary source
Read the full article at UK GOVThis summary was published on VATfaqs.com on 31 July 2026. It relates to VAT developments in United Kingdom. The original source is UK GOV.
