7(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 in respect of the supply or importation of the goods has been allowed to him;
(b)that the goods were not acquired by him 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.
(3)The Treasury may by order increase or further increase the sum specified in sub-paragraph (1)(c) above.
Marginal Citations