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What kinds of asset are covered by the capital goods scheme?

The CGS does not apply to all kinds of asset. In fact, it covers a relatively limited range of assets. These assets are often referred to as ‘capital items’. Capital items fall into three broad categories:

1. •

   land and buildings valued at £250,000 or more (excluding VAT)

2. •

   computers valued at £50,000 or more (excluding VAT)

3. •

   aircraft, ships, boats, and other vessels valued at £50,000 or more (excluding VAT)

As a general rule, the value of the capital expenditure is normally the expenditure which has been capitalised for accounting purposes, but this is not always the case (see below).

SI 1995/2518, reg 113; Notice 706/2, para