V3.261 Assets held at deregistration
When persons cease to be taxable persons, goods (including land) then forming part of the assets of their business are deemed to be supplied by them1 to give rise to a charge to tax. There are two relieving provisions. The first exempts specific goods from the deemed supply and the second exempts all goods in specified circumstances.
Services (eg a licence to sell computer software) held at the time of deregistration are excluded from the charge2.
Exemptions for specific goods
Since the apparent intention of the deemed supply is to claw back input tax credited when the goods were originally obtained, it would be inequitable for persons to account for VAT on goods that did not give rise to an input tax credit when they were acquired.
Two situations can be distinguished:
- Ìý
•ÌýÌýÌýÌý First, if the goods were bought or imported before 1 April 1973 they may have been charged to purchase tax or excise duty, but would not have been charged to VAT. If relief
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