Jurisdiction(s):
United Kingdom

Key definition

Goods definition

What does Goods mean? In legal practice, goods are tangible, movable items that are bought, sold, supplied or hired under commercial or consumer contracts. Across the UK and Ireland, legislation defines the term: the Sale of Goods Act 1979 (England & Wales and Scotland), the Sale of Goods Act (Northern Ireland) 1979, and in Ireland the Sale of Goods Act 1893 as amended by the 1980 Act. Broadly, goods comprise all personal chattels (in Scotland, all corporeal moveables) other than money and things in action. The statutory definition includes emblements and industrial growing crops, and items attached to or forming part of land...

UK VAT Capital Goods Scheme (CGS): thresholds, partial exemption, adjustments, disposals/TOGCs, part disposals, non-business use, and property issues (dwellings, RRP/RCP), with opt to tax considerations

Published by a LexisNexis Tax expert

Practice notes

FORTHCOMING CHANGE :

HMRC issued a call for evidence in 2019 on ‘simplifying’ the VAT partial exemption Rules and the capital Goods scheme (CGS). In March 2021 this was followed by a summary of responses that set out adjustments to partial exemption processes and confirmed HMRC would continue to engage with stakeholders on other matters. No timetable was provided for any subsequent steps, yet it appears probable that, in due course, the CGS threshold for land and property will be lifted, perhaps to £1m, with other assets removed from the scheme altogether.

Why does this matter?

This Practice Note examines the principles of the VAT capital goods scheme. The CGS can give rise to a significant liability for property owners, especially on a disposal. That exposure is usually avoidable, but only where it is identified and appropriate measures are taken. This does not invariably occur, and Negligence claims are not uncommon. The CGS can also, on occasion, enable additional VAT to be recovered from HMRC, and for certain businesses it imposes an ongoing Compliance obligation...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Martin Scammell

Martin Scammell is an independent VAT consultant, specialising in property and construction matters, who works with tax departments in major corporates and universities, and with a number of law and accountancy firms. He is the author of the leading reference work on VAT and property.Martin started out in VAT Policy in Customs & Excise, was a Partner at Ernst & Young, where he headed up the VAT real estate group, and then became head of indirect tax at Eversheds.He has been involved in the development of VAT legislation and policy over many years, and regularly serves on working parties established by HMRC. He was a member of the Office of Tax Simplification’s consultative committee for their review of VAT in 2017, and in 2018-19 of HMRC’s external stakeholder group considering the proposed reverse charge for building work. Martin currently works with HMRC as...

Web page updated on 22/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...