The assets that are included in the scheme are:
- land, buildings and civil engineering work
- computers and computer equipment
- aircraft, ships, boats or other vessels
If your asset is used only for making taxable supplies, you can reclaim all of the VAT you’ve paid. If you use the asset partly for business and partly for making exempt or non-business supplies, you can only reclaim a proportion. You do this by using your partial exemption and non-business calculations.
Land, buildings and civil engineering work
You’ll have to use the Capital Goods Scheme if you spend £250,000 (excluding VAT) or more on:
- buying land, a building or part of a building or civil engineering work
- constructing a building or civil engineering work
- refurbishing, fitting out, altering or extending a building or civil engineering work
Civil engineering work includes things like roads, bridges, golf courses, running tracks and the installation of pipes for connecting to mains services.
Computers and computer equipment
The scheme only applies to individual computers, or items of computer equipment, that cost £50,000 (excluding VAT) or more. It doesn’t cover something like a network where the total cost of the server and all the computers and printers is £50,000 or more but each individual item is less than £50,000. Nor does it cover computerised equipment (for example, a computerised telephone exchange or computer-controlled blast furnace) or computer software.
Aircraft, ships, boats and other vessels
The scheme applies if you spend £50,000 or more (excluding VAT) on purchasing, constructing, refurbishing, fitting out, altering or extending an aircraft, ship, boat or other vessel.