Commentary

V7.157 VAT deregistration—sale of a business

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.157 VAT deregistration—sale of a business

Part V7 Tax planning | Commentary

V7.157 VAT deregistration—sale of a business

A business owner must also deregister if he sells his business, although it is possible that the new owner may want to retain the same VAT registration number. Is this wise?

The main disadvantage with new owners taking over an existing VAT registration is that they are also agreeing to take over any potential VAT debts of the previous business. This could cause problems if, for example, a VAT inspection going back three or four years found a number of underpayments that were relevant to the period when the previous owner was running the business.

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