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HMRC internal manual

VAT Registration

From
HM Revenue & Customs
Updated
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The effects of death, insolvency and incapacity on registration: death of a partner: single surviving partner

If the business activities of the partnership continue after the death of the partner, you should establish how many partners remain in the business. If there is only one remaining partner, you should find out if he intends to continue trading on his own as a sole proprietor or if he intends to replace his former partner.

If two or more partners remain and continue to trade, and the partnership is registered in the firm name, all you need to do is strike off the name of the deceased partner from the VAT 2.

If it is registered in the names of the individual partners, you will need to amend the trader’s name on the register (using a VAT 12) and strike out the name of the deceased partner from the VAT 2.

If only one partner remains and he intends to continue trading on his own as a sole proprietor, you should deregister the partnership and register the sole proprietor under a new VAT number (using a VAT 1). If, in this situation, the trader asks for the VAT number of the partnership to be reallocated to the sole proprietor, you will need to take VAT68 action. The remaining partner may sign the VAT 68 both on behalf of the partnership and on his own behalf as a sole trader.

If the sole surviving partner intends to find a replacement for the deceased partner and the new partner takes up his position in the partnership more or less immediately, you should:

  • amend the trader’s name if the partnership is registered in the names of the individual partners, and
  • ask the new partner to sign a VAT 2.

If the sole surviving partner intends to find a replacement for his deceased colleague and it appears that it might be some time before a replacement partner is found, you should register the sole remaining partner as a sole proprietor either by deregistering the partnership and registering the sole trader or by taking VAT 68 action.