15. Partial exemption.

Businesses that incur VAT on purchases related to exempt supplies must use a partial exemption method to calculate how much input tax they can recover. This requirement applies to all VAT-registered traders, including those in insolvency, receivership, or administration. From 29 July 2026, the Capital Goods Scheme will no longer cover computers and computer equipment, and the expenditure threshold for land, buildings, and civil engineering works will increase to £600,000.