Capital goods scheme to be simplified

The capital goods scheme is to be simplified by removing computers from the assets covered by the scheme and increasing the capital expenditure value of land buildings and civil engineering work to £600 000 (exclusive of VAT) the government announced.

The aim is to reduce the number of capital assets that would fall within the scheme therefore reducing the administrative burden on small businesses.

The government says it will make these changes ‘in this parliament’.

Neil Warren independent VAT consultant said: ‘An increase in the land and buildings threshold from £250 000 is long overdue – however the proposed £600 000 threshold seems to be linked to price inflation rather than property inflation the latter figure is much higher. The removal of computers from the assets covered by the scheme does not whet the appetite – complex and...