Andrew Needham looks at pitfalls of deregistering a property rental business and how to avoid them.
If a business’s taxable turnover falls below the deregistration threshold (currently £88,000 per annum), it can deregister from VAT and no longer needs to account for VAT on its sales. However, on the downside, it is necessary to account for VAT on a deemed supply of assets on hand at deregistration if the VAT comes to more than £1,000.
But how does this requirement affect a business that owns a commercial property?
The main considerations for a property rental business deregistering for VAT will be the option to tax, and the capital goods scheme (CGS).
Owning a property
If a business deregisters from VAT and owns
