On ceasing to be a taxable person (i.e. on ceasing to be VAT-registered), certain goods (not services: ¶44-010) are deemed to be supplied and a VAT liability arises, unless:

(a)the VAT on the deemed supply is no more than £1,000 (before 1 April 2000 the limit was £250) (VATA 1994, Sch. 4, para. 8). Where the value of the goods is a little above £1,000, output tax is due on the full value of the assets held, i.e. the £1,000 cannot be deducted in calculating the liability;

(b)the business is transferred as a going concern to another person who is VAT-registered or becomes VAT-registered as a result of taking over the business (subject to certain conditions);

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