As VAT is claimed on the Second hand Cars only at the Sale of the vehicle, how should stock be treated when the business is de-registered for VAT. Any help or information would be appreciated.
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You're wrong in your analysis that input tax is claimed on the sale of the vehicle. There is no input tax - most of these cars will be sold to the trader by unregistered persons for a start.
Deregistration has no effect on stock and vice versa.
Unless any are qualifying cars on which you were charged VAT, and whose net value exceeds £5,000.