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HMRC internal manual

VAT Registration

The effects of death, insolvency and incapacity on registration: death of a partner: notification of the death of a partner

Under the VAT Act 1994, section 45(2), until the date on which any change in the constitution of the partnership is notified to the Commissioners in writing, the registration (and also the liability for tax) of the partnership continues unchanged and it is irrelevant in such circumstances whether the partnership is reduced to one person.

But once notification of the death of a partner is received, consideration will need to be given to the use of regulation 9 and whether, in the particular circumstances of the case, it would be appropriate. Regulation 9 can effectively allow the business of a partnership to continue for the purposes of winding up the partnership affairs without the need to re-register it.

If, on the death of the partner, the partnership is dissolved and trading ceases, you will need to deal with the case in accordance with the guidance on insolvency or debt management as appropriate.