The reason for the change is to simplify the current rules by removing ‘the complex adjustments calculations’, HMRC stressed, while also making critical changes to eligibility with the threshold limit raised to £600,000.

HMRC said the ‘simplification will introduce two significant changes to the scheme’, pointing to the use of valuation figures based on 1990 figures. As many tax thresholds have not been updated for many years, maybe this signals a new approach to uprating old tax bands and rates.

From 29 July 2026, computers and items of computer equipment will be removed from the list of assets. This means CGS will no longer apply to capital expenditure on computers and items of computer equipment.