The Value Added Tax (Amendment) Regulations 2026
· WOWERI
The Value Added Tax (Amendment) Regulations 2026 introduce changes to the list of capital items. The minimum value of VAT-bearing capital expenditure has been increased to £600,000.
The Value Added Tax (Amendment) Regulations 2026
The Value Added Tax (Amendment) Regulations 2026, published on http://www.legislation.gov.uk/id/uksi/2026/765, introduce changes to the list of capital items. According to these changes, a computer or an item of computer equipment will no longer be considered a capital item subject to the VAT regime.
Minimum Value of VAT-Bearing Capital Expenditure
The minimum value of VAT-bearing capital expenditure has been increased to £600,000. This means that only capital expenditure exceeding this amount will be subject to VAT.
Impact on Business
These changes may affect businesses that incur capital expenditure. It is recommended to consult with a tax professional to understand how these changes may impact your business.
What to do next
Source: legislation.gov.uk