The Value Added Tax (Amendment) Regulations 2026

• Citation: S.I. 2026/765
• Sections: 2

Section 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.

Section 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)” .