VATDREG16050 – Stocks and assets on hand: general provisions
The legal provisions relating to goods and capital assets on hand at the time of deregistration are contained in the VAT Act 1994, Schedule 4, paragraph 8. Under that provision a person ceasing to be a taxable person is deemed to have supplied the goods forming part of the business assets immediately before ceasing to be a taxable person. The effect of this is that tax is normally payable on the goods and assets, which remain on hand at the time of deregistration unless the trader is eligible to take advantage of any reliefs available. You will find details of those reliefs and further guidance on stocks and assets in VATSC – VAT Supply and consideration.
Source gov.uk
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