Commentary

V7.158 VAT deregistration—change of legal entity

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.158 VAT deregistration—change of legal entity

Part V7 Tax planning | Commentary

V7.158 VAT deregistration—change of legal entity

The other main situation where a registration must be cancelled is where a business changes its legal entity. For example, a common situation in recent years (due to favourable rates of corporation tax) has been for a sole trader or partnership to incorporate the business.

In such situations, there are again two options:

  1.  

    •     the parties involved can sign Form VAT 68 so that the new entity retains the same VAT registration number. This arrangement would be sensible in the case of incorporation mentioned above – as the same persons are involved in both businesses

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