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 [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.
Textual Amendments
F1Words 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).
F2Words 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).
F3Sch. 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