# The Value Added Tax (Amendment) Regulations 2026

S.I. 2026/765 · made 7 July 2026

These Regulations amend Part 15 of the Value Added Tax Regulations 1995 to remove a computer or an item of computer equipment from the list of capital items to which the Part applies. These Regulations also change to £600,000 the minimum value of the VAT bearing capital expenditure at which land, a building or part of a building and a civil engineering work or part of a civil engineering work are capital items to which Part 15 applies.

Made under: Value Added Tax Act 1994 (Section 26, Schedule 9ZA paragraph 15)

PDFs: Printed copy https://openlegislation.uk/value-added-tax-amendment-regulations-2026/pdf/uksi_20260765_en.pdf; UK Explanatory Memorandum https://openlegislation.uk/value-added-tax-amendment-regulations-2026/pdf/uksiem_20260765_en_001.pdf

## Introductory text

VALUE ADDED TAX
Made 7th July 2026
Laid before the House of Commons 8th July 2026
Coming into force 29th July 2026
The Commissioners for His Majesty’s Revenue and Customs make these Regulations in exercise of the powers conferred by section 26(3) and (4) of, and paragraph 15(4) of Schedule 9ZA to, the Value Added Tax Act 1994.

## 1 Citation, commencement and effect

(1) These Regulations may be cited as the Value Added Tax (Amendment) Regulations 2026.
(2) These Regulations come into force on 29th July 2026.
(3) Regulation 2 has no effect in relation to a capital item if the owner incurred any relevant expenditure on or in relation to that capital item in respect of—
(a) goods or services supplied to the owner before 29th July 2026,
(b) goods imported by the owner before 29th July 2026, or
(c) goods acquired from a member State by the owner before 29th July 2026.
(4) In this regulation—
“capital item” has the meaning given in regulation 112(2) of the Value Added Tax Regulations 1995 (interpretation of Part 15), as determined immediately before regulation 2 came into force;
“owner” has the meaning given by regulation 112(2) of the Value Added Tax Regulations 1995;
“relevant expenditure” means VAT bearing capital expenditure of a type specified in regulation 113(3) of the Value Added Tax Regulations 1995, as that provision read immediately before regulation 2 came into force.

## 2 Amendment of the Value Added Tax Regulations 1995

(1) The Value Added Tax Regulations 1995 are amended as follows.
(2) In regulation 113 (capital items to which Part 15 applies)—
(a) in paragraph (2), omit sub-paragraph (d);
(b) in paragraph (3)(a), omit “or (d)”;
(c) in paragraph (4)—
(i) in sub-paragraph (a), for “£250,000” substitute “£600,000”;
(ii) in sub-paragraph (b), for “(2)(d), (e) or (f)” substitute “(2)(e) or (f)”.
(3) In regulation 113A (grant of facilities for the self storage of goods under item 1(ka) of Group 1 of Schedule 9 to the Value Added Tax Act 1994), in paragraph (2)(a), for “£250,000” substitute “£600,000”.
(4) In regulation 114 (period of adjustment), in paragraph (3)(b), for “regulation 113(2)(d) to (f)” substitute “regulation 113(2)(e) or (f)”.

## Signature

Myrtle Lloyd
Justin Holliday
Two of the Commissioners for His Majesty’s Revenue and Customs
7th July 2026

## Explanatory note

(This note is not part of the Regulations)
These Regulations amend Part 15 of the Value Added Tax Regulations 1995 to remove a computer or an item of computer equipment from the list of capital items to which the Part applies. These Regulations also change to £600,000 the minimum value of the VAT bearing capital expenditure at which land, a building or part of a building and a civil engineering work or part of a civil engineering work are capital items to which Part 15 applies.
Regulation 1(3) provides for exclusions from the effect of the amendments set out in regulation 2.
Regulation 2(3) and (4) make consequential amendments.
A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.

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Source: https://www.legislation.gov.uk/uksi/2026/765 (the official version)
Page: https://openlegislation.uk/value-added-tax-amendment-regulations-2026
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.