- Following recommendations from the OTS, the previous government requested comments and suggestions to improve operation of the partial exemption rules and the Capital Goods Scheme (CGS).
- HMRC introduced an online process for submitting proposals for partial exemption special methods (PESM) and a checklist of information required for PESM applications.
- On 28 April 2025, the government announced that it would remove computers from the assets covered by the CGS and increase the capital expenditure value of land, buildings and civil engineering work to £600,000.
- Timing: it is currently not clear when these changes may take effect.
Resources (click to open)
- Tax update spring 2025: simplification, administration and reform summary (April 2025)
- VAT: Simplifying partial exemption and capital goods scheme (HMRC consultation (July 2019), response paper (March 2021))
