HMRC have published Revenue and Customs Brief 1 (2026): 'Removal of linked goods concession', which confirms that the Extra Statutory Concession (ESC) for VAT on minor promotional items supplied in linked supplies schemes has been withdrawn.
Provided the conditions were met, the linked goods concession allowed a minor article to be accounted for at the same VAT rate as a main article when they were provided together.
The ESC has been withdrawn with immediate effect because it falls within already established case law. HMRC's view is that supplies which would be treated as single supplies under the ESC will continue to be treated as single supplies under case law.
There is no change in policy or VAT treatment as a result of the withdrawal of the ESC. Businesses should continue to assess whether a supply is a single or multiple supply in the usual way.
Useful guides on this topic
Mixed supplies: Single or Multiple supply?
Is a mixed supply a single or multiple supply for VAT purposes? What tests and case law apply?
External link
Revenue and Customs Brief 1 (2026): Removal of linked goods concession