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HMRC internal manual

VAT Deregistration

Values of supplies and acquisitions: reduced turnover due to forthcoming change in liability of supplies

Historically, these applications have come from professionals (for example, chiropractors and osteopaths) where the Government has approved the creation of a General Council Register for their profession. Professional supplies by persons on such registers are normally exempt. A Business Brief will usually be issued which will explain the VAT registration and deregistration position.

Where a new register is about to be set up, you will probably start to receive applications to deregister on grounds of reduced turnover. In these circumstances, you should only consider applications from professionals where you have proof that the General Council has accepted them onto the new register. There is usually a fairly rigorous application procedure, so there is no guarantee of acceptance. Once you have evidence that the professional has been accepted onto the register, you should treat the deregistration application as you would any other application. This approach has been supported at Tribunal in the case of RG Wadsworth v C & E Commissioners MAN/98/752 VTD 16128.