HMRC has updated Notice 742A to clarify the treatment of opted land and buildings, including the requirement to account for output tax on assets remaining on hand at the point of VAT registration cancellation and the removal of a temporary change to the notification time limit. The notice also outlines whether optors need HMRC permission before exercising the option and how to notify HMRC of the decision.
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1stopVAT · 1 day ago
UK: HMRC is consulting on expanding deemed supplier rules for online marketplaces to include UK-based vendors, aiming to curb VAT fraud. The consultation will run until 18 August 2026, and stakeholders are invited to submit views.
1StopVAT · 3 days ago
UK: The First-tier Tribunal ruled that HBS Enterprises Ltd, a UK-established business, remains liable for VAT on marketplace sales, despite HMRC’s misclassification as a non-established taxable person. The ruling confirms that the deemed supplier provision does not apply when the vendor is established in the UK, and that double taxation is avoided.
RTCSuite · 3 days ago
The UK will require all VAT invoices to be issued in a specified electronic format from 1 April 2029, covering B2B and B2G transactions. Peppol will serve as the core interoperability network, and NHS England already mandates PEPPOL-compliant invoicing for its suppliers.
UK Government · 4 days ago
The UK HMRC announces simplification of the Capital Goods Scheme effective 29 July 2026. Computers and computer equipment will be excluded and the expenditure threshold for land, buildings and civil engineering work rises to £600,000.
Law360 · 4 days ago
The UK Upper Tribunal ruled that dental aligners are not exempt from VAT under the dental prostheses provision. The decision reverses a lower tribunal ruling and means dental practices must charge VAT on aligners.
Law360 · 5 days ago
UK: The London appeals court has ruled that alternative education providers can claim a VAT exemption for their services. The decision overturns HMRC's earlier denial and may affect VAT treatment for educational institutions.
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Key Takeaways
Output tax must be accounted for on the value of that asset.
Yes, the temporary change has ended, so the original time limit applies.
The notice was updated on 2 June 2026.
Primary source
Read the full article at Marcus WardThis summary was published on VATfaqs.com on 3 June 2026. It relates to VAT developments in United Kingdom. The original source is Marcus Ward.
