The planned increase in the capital goods scheme threshold

There are times working in tax when we eagerly anticipate announcements about important changes to the legislation – usually after the closure of a high-priority consultation or major HMRC review – but when they finally arrive we find ourselves scratching our heads with disappointment and saying: ‘Is that it? I expected more.’ We should probably adopt the mantra of the eighteenth century poet Alexander Pope who is often quoted with the line: ‘Blessed is he who expects nothing for he shall never be disappointed.’

Anyway back to VAT and the recent announcement in HMRC’s publication headed ‘Tax update spring 2025: simplification administration and reform’ published on 28 April 2025 (tinyurl.com/mavysh6) about two changes to the capital goods scheme (CGS) that will take place at a future date not yet confirmed:

• Computers – the inclusion of computer hardware and equipment costing £50 000...