CGS Limit Finally Changes!

The recent Tax Update: Simplification, Administration and Reform (“TUSAR”) announcement included some interesting VAT updates:

• Capital Goods Scheme simplification – a welcome £250k to £600k threshold increase for land, buildings and civil engineering work threshold change, computers removed

• Consultation on the VAT treatment of business donations of goods to charity – good news if leads to incentivising more donations as intended

• Online marketplace liability for VAT – the government is keen to explore refining the 2021 reforms to further improve OMP VAT compliance

While the full impact remains uncertain, you can be assured that we’re monitoring developments closely. We anticipate upcoming legislative updates and will continue to track any changes, providing timely updates on our news page.