Paragraph 7

United Kingdom

(1)

Where a person ceases to be a taxable person, any goods then forming part of the assets of a business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless—

(a)

the business is transferred as a going concern to another taxable person; or

(b)

the business is carried on by another person who, under regulations made under section 31(4) above, is treated as a taxable person; or

(c)

the tax on the deemed supply would not be more than £250.

(2)

This paragraph does not apply to any goods in the case of which the taxable person can show to the satisfaction of the Commissioners—

(a)

that no credit for input tax F1has been allowed to him in respect of the supply of the goods, their acquisition from another member State or their importation from a place outside the member States;

(b)

that the goods F2did not become his as part of the assets of a business which was transferred to him as a going concern by another taxable person; and

(c)

that he has not obtained relief in respect of the goods under section 4 of the M1Finance Act 1973.

F3(2A)

This paragraph does not apply where a person ceases to be a taxable person in consequence of having been certified under section 37B of this Act.

(3)

The Treasury may by order increase or further increase the sum specified in sub-paragraph (1)(c) above.

Annotations

Textual amendments

F1: Words in Sch. 2 para. 7(2)(a) substituted (1.12.1992) by Finance (No. 2) Act 1992 (c. 48), s. 14(2), Sch. 3 Pt. I para. 60(2)(a); S.I. 1992/2979, art. 4, Sch. Pt. II (with art. 5); S.I. 1992/3261, art. 3, Sch. (with art. 4).
F2: Words in Sch. 2 para. 7(2)(b) substituted (1.12.1992) by Finance (No. 2) Act 1992 (c. 48), s. 14(2), Sch. 3 Pt. I para. 60(2)(b); S.I. 1992/2979, art. 4, Sch. Pt. II (with art. 5); S.I. 1992/3261, art. 3, Sch. (with art. 4).
F3: Sch. 2 para. 7(2A) inserted (1.1.1993) by Finance (No. 2) Act 1992 (c. 48), s. 16(4); S.I. 1992/1867, art. 3, Sch. Pt.I.

Marginal citations

M1: 1973 c. 51.

Notes on the whole Act

Textual amendments

F1: Act repealed (1.9.1994) by 1994 c. 23, ss. 100(2), 101(2), Sch. 15 (with Sch. 13 paras. 2, 6, 9)