Commentary

V7.154 VAT deregistration—exclusion of capital assets

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.154 VAT deregistration—exclusion of capital assets

Part V7 Tax planning | Commentary

V7.154 VAT deregistration—exclusion of capital assets

One point to remember is that the sale of capital assets is excluded when considering whether taxable turnover in the next year will be less than the deregistration threshold.

For example, if a business expects sales to be £100,000 in the next 12 months but this includes the sale of a machine that is a capital asset of the business for £30,000, then the relevant figure to consider is £70,000. An application to deregister could therefore be made.

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