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Key domestic legislation: Value Added Tax Act 1994, Sch 1, para 3

There are a number of reasons why UK VAT registered businesses deregister from UK VAT, and deregistration may be voluntary or compulsory. The main reasons for deregistering from UK VAT are as follows:

1. Ìý

   •ÌýÌýÌýÌý No longer making taxable supplies.

2. Ìý

   A business that, for example, ceases to make taxable supplies (see 55.29) but continues to trade making only exempt supplies must deregister. This is because a business that makes only exempt supplies has no right to be VAT registered.

3. Ìý

   •ÌýÌýÌýÌý Business is sold as a transfer of a going concern.

4. Ìý

   Where the whole of a business is transferred as a going concern, the seller must cancel its UK VAT number and select 'transfer of a going concern' as the reason for the cancellation. The seller must also know, at the time of deregistration, whether the buyer will:

5. Ìý
   1. Ìý

      –ÌýÌýÌýÌý apply for a new VAT registration number; or

   2. Ìý

      –ÌýÌýÌýÌý apply for the old VAT registration number